Regency Alliance Insurance Plc consistent profit growth amid an unstable macroeconomic environment validates its financial stability.
For the first six months through June 2024, Regency Alliance’s profit was up by 26.67 percent to N756.30 million from N587.76 million as at June 2023.
The growth at the bottom line (profit) was largely driven by finance income and investment income as financial firms have benefitted from higher interest rates.
Investment income was up 28.83 percent from N623.66 million in the period under review from N484.09 million the previous year.
Insurance finance income hit N169.78 million as at June 2024, from a loss of N166.38 million as at June 2023.
Revenue was up by a mere 5.86 percent to N3.61 billion in the period unde review from N3.41 billion the previous year.
In a report by the Punch Newspaper, Regency Alliance attributed its financial stability to its robust asset and liability management framework, which helped manage financial risks associated with interest rates, foreign currency, equity prices, and credit risks.
“The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance assets, and insurance liabilities. Asset and Liability management attempts to address financial risks the group is exposed to, which include interest rate risks, foreign currency risks, equity price risks, and credit risks,” said the firm.
“The major financial risk is that in the long term, its investment proceeds are not sufficient to fund the obligations arising from its insurance and investment contracts. ALM ensures that specific assets of the group are allocated to cover reinsurance and liabilities of the Group,” the firm stated.
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