Regency Alliance Insurance projects profit after tax of N808.2 million in Q4 2021.

Regency Alliance Insurance Plc released its earnings forecasts for the fourth quarter of the year (Q4, 2021) ending 31st of December, 2021.

  • Net premium is projected at N3.01 billion
  • Net claims projection of N957.82 million
  • Net operating income is projected at N2.38 billion
  • Underwriting/Management expenses projection of N955.54 million
  • Tax is projected at N70.3 million
  • Profit after tax is projected at N808.2 million.

See link to forecasts.

Standard Alliance Insurance Plc: Notice of Board Meeting

Standard Alliance Insurance Plc has notified its shareholders, the investing public and other relevant stakeholders that it will be hosting a Board of Directors Meeting on Thursday, October 28, 2021.

This is according to a notice signed by the company’s secretary, Kasoki Hart Olekanma, and filed with the Nigerian Exchange Limited (NGX).

According to the notice, the board meeting is scheduled to enable the Directors deliberate on and approve the company’s unaudited financial accounts for the third quarter ended 30th of September, 2021.

Consequently, in line with Rule 17.18 of the Rulebook of the Nigerian Exchange Limited (NGX), the company disclosed that it had already commenced a closed period from October 1, 2021. The closed period will last until 24 hours after the financial results have been released to the NGX and made public.

During the closed period, all insiders such as: Director, persons discharging managerial responsibilities, and advisers of the Company and their connected persons  are prohibited from trading (i.e. buying, selling, transferring or otherwise dealing) in the company’s shares.

 

For more information about the disclosure, click HERE.

 

DEAL: AfricInvest acquires minority stake in Royal Exchange General Insurance Company.

AfricInvest, a leading Pan-African asset management company has announced the acquisition of a minority stake in Royal Exchange General Insurance Company (REGIC). The investment was made through its private equity fund, FIVE, in the form of a subscription to a capital increase.

According to a notice issued by the company and filed with the Nigerian Exchange Limited (NGX), the new investment has already been approved by National Insurance Commission (NAICOM).

Following the recent investment, the Board of REGIC will be subsequently restructured to reflect this new reality. New directors from FIVE (the private equity arm of AfricInvest), will join the Board of REGIC, alongside Royal Exchange Group and Blue Orchard’s InsuResilience Investment Fund (IIF) that had earlier invested in the company in July 2019.  These new directors are expected to bring their wealth of experience and expertise in their various fields into play and chart a new strategic direction for REGIC, especially as the company seeks to be among the top 3 general insurance companies in Nigeria within the next 5 years. The appointment of these new Directors is awaiting approval from the primary regulatory body, NAICOM.

Why this matters: The investment will avail REGIC the opportunity to expand its underwriting capacity in key priority areas considered as the future of insurance, such as the retail mass market, agricultural insurance and insurtech, among others. In this light, the firm will be empowered to participate in more large-ticket corporate transactions, diversify its existing business and product lines as well as diversify its delivery channels.

In addition, the firm (REGIC) disclosed that the recent investment will help strengthen its execution capabilities at top and middle management in order to ensure the successful implementation of an ambitious growth plan for the company within the next 5-7 years.

What they are saying: Commenting on the new investment by AfricInvest, the Chairman of Royal Exchange Plc, Mr. Kenneth Ezenwani Odogwu, Chairman of Royal Exchange Group added, “Being the first insurance company in Nigeria and having been in business for over 100 years, I am excited and hopeful that we will be just as prominent for the next 100 years. The investment by AfricInvest and Blue Orchard is an important inflection point on this journey. Under the auspices of a new board led by a seasoned professional like Mr. Ike Chioke (awaiting NAICOM approval), I am confident that we will continue to provide relevant services and products to a new generation of insurance customers

Mehdi Gharbi, Senior Partner at AfricInvest and Co-head of FIVE, commented, “REGIC represents a perfect fit with the investment strategy of FIVE as it combines return and impact. REGIC’s expansion plan will allow the Company to achieve sustainable and strong growth, facilitating access to insurance while creating value for stakeholders. I’m excited to join the REGIC’s board and to contribute alongside my colleagues the emergence of a new champion in the Nigerian insurance market.”

Ernesto Costa, Head of Private Equity Investments at BlueOrchard and representative of IIF in the board of REGIC added, “One of the key drivers behind our decision to invest in REGIC in 2019 was the history of the company, as well as the commitment of the key shareholders and management team to chart a new strategic direction for the company towards retail and improving the resilience of small-scale farmers, SMEs and households against the effects of climate change. We are happy with the addition of AfricInvest, a like-minded and experienced investor, as a strategic shareholder and together, we will offer the necessary expertise, leadership and direction from the Board to ensure REGIC continues on its growth trajectory.’’

Sylma du Plessis, Partner at Alkebulan and advisor to the Royal Exchange Group commented, “This transaction is testament to REGIC’s strong management and opportunity set that it could successfully attract investors of the caliber of FIVE. We are proud to have played a part in securing funding for and giving financial advice to the Royal Exchange Group.”

What you should know:

  • Royal Exchange General Insurance Company (REGIC) is one of Nigeria’s biggest private insurance companies established in 2008, following the restructuring of the then Royal Exchange Assurance Nigeria (REAN) which had been in operation for over a century in Nigeria.
  • AfricInvest is a leading private equity firm in Africa that has raised over $1.9 billion in funds. It was founded in 1994 and has made over 180 investments in more than 25 countries across the African continent in a variety of sectors.
  • Financial Inclusion Vehicle (FIVE) is the private equity arm and the evergreen investment vehicle of AfricInvest. It was raised in December 2017 and dedicated to the financial sector in Africa.
  • For this transaction, Royal Exchange General Insurance Company had Messrs Alkebulan and Co as its Financial Advisers, while Sefton Fross were its Legal Advisers. On the other hand, Udo Udoma, Bello Osagie (UUBO) and Co acted as the Legal Adviser for FIVE, while Punuka International Law Centre acted as the Legal Adviser for Royal Exchange Plc.

 

Royal Exchange Plc to hold 52nd Annual General Meeting (AGM) on October 28

The Board of Royal Exchange Plc has announced that it will be hosting its 52nd Annual General Meeting on the 28th of October, 2021. The meeting will be virtually held at the company’s operations office in Oshodi, Lagos, by 10:00 am prompt.

This is according to a statement issued by the company and made available on the website of the Nigerian Exchange Limited (NGX).

Some of the issues to be discussed at the AGM include;

  • The audited financial statement for the year ended December 31, 2020, and the report of its Directors, auditor, and the audit committee.
  • Board appointments will also be considered and ratified.
  • To fix remuneration of managers and Directors in FY 2021.
  • To elect shareholders’ representatives of the statutory audit committee, among others.

In view of the directives on physical distancing and the restriction on maximum number of people at every gathering due to the COVID-19 pandemic, the meeting will hold by proxy in accordance with section 254 of the Companies and Allied Matters Act 2020 and as approved by the Corporate Affairs Commission.

Additionally, the AGM will be streamed live online, to enable shareholders and other relevant stakeholders who will not be attending the meeting physically to also be part of the proceedings. The link for the live streaming will be made available on the company’s website: www.royalexchangeplc.com

What you should know:

  • Royal Exchange Plc had earlier reported a 62% decline in its 2021 half year profit to N233.12 million.

For more information about the AGM, click HERE.

 

2021 H1 Results: Royal Exchange half year profit slumps by 62% to N233.12 million.

Royal Exchange released its unaudited consolidated financial statements for the half year period ended June 30, 2021.

  • Net premium income for the period was N3.66 billion. (-11% YoY)
  • Fees and commission income of N307.2 million. (+13% YoY)
  • Underwriting profit was N892.04 million. (-22% YoY)
  • Total expenses of N1.11 billion. (+14% YoY)
  • Profit after tax was N158.5 million. (-62% YoY)
  • Loss per share of 1 kobo Vs 5 kobo YoY.
  • Total shareholders’ fund for the period was N3.31 billion. (-10% YoY)

See link to results.

Royal Exchange grows profit by 10% to N22.76 million in Q1 2021.

Royal Exchange Plc released its unaudited consolidated financial statements for the quarter ended 31 March, 2021.

  • Net premium income during the period was N2.6 billion. (+22% YoY)
  • Fees and commission income of N120.4 million. (+14% YoY)
  • Underwriting profit of N822.41 million. (+69% YoY)
  • Total expenses of N850.24 million. (+62% YoY)
  • Total assets stood at N27.63 billion during the period under review.
  • Profit after tax was N22.76 million (+10% YoY)
  • Total shareholders fund was N3.29 billion. (-10% YoY)
  • Loss per share of -N2 Vs. -N3 YoY

See link to results.

African Alliance Insurance Plc reports profit after tax of N5.05 billion in H1 2021.

African Alliance Insurance Plc released its unaudited financial results for the period ended 30th of June, 2021.

  • Net premium income for the period was N3.22 billion. (+38.5% YoY)
  • Fees and commission income of N116.91 million. (+100% YoY)
  • Net underwriting profit of N11.07 billion. (+778% YoY)
  • Total assets during the period stood at N46.7 billion.
  • Profit after tax for the period was N5.05 billion.

See link to results.

African Alliance Insurance Plc reports a loss of N3.53billion in Q1 2021.

African Alliance Insurance Plc released its unaudited financial results for the period ended 31st of March, 2021.

  • Net premium income for the period was N1.95 billion. (+12.9% YoY)
  • Fees and commission income of N22.05 million. (+100% YoY)
  • Net underwriting loss of N153.4 million.
  • Total assets during the period stood at N52.14 billion.
  • Loss for the period was N3.53 billion.

See link to results.

Royal Exchange reports a loss after tax of N77.12 million in FY 2020.

Royal Exchange Plc released its audited full-year results for the year ended December 31, 2020.

  • Net premium income for the period was N8.19 billion. (-6% YoY)
  • Fees and commission income of N663.21 million. (+38.3% YoY)
  • Net claims expenses of N2.7 billion. (-16% YoY)
  • Underwriting profit was N1.12 billion. (+22.2% YoY)
  • Operating expenses totalled N2.3 billion. (-3.6% YoY)
  • Loss after tax was N77.12 million.
  • No dividend was declared during the period.

See link to results.

AXA Mansard Insurance Plc completes share reconstruction exercise.

AXA Mansard Insurance Plc has announced the successful completion of its share reconstruction exercise, and the subsequent lifting of the closed period embarked upon by the firm during the period.

This was confirmed by the firm in a recent press release signed by its secretary, Mrs. Omowunmi Mabel Adewusi, and filed with the Nigerian Exchange Limited (NGX).

Recall that in an earlier notice dated 7th of September 2021, the Insurance firm had notified shareholders and the investing public of its plans to reconstruct or redenominate its shares from a nominal value of 50 kobo to N2 per share. The firm claimed that it had obtained approval from its shareholders during its Extraordinary General Meeting to proceed with this.

In a bid to facilitate the reconstruction exercise, trading in the shares of AXA Mansard Insurance Plc were suspended from Thursday 9th of September, 2021, so that shareholders’ register can be updated with the reconstructed shares.

However, in a recent development, the firm has notified its shareholders and the general public that it has completed the exercise and lifted the embargo placed on the trading of its shares. Confirming the recent development, the insurance giant  in the recent press release said: ‘Following the communication to the Nigerian Exchange Limited and to the esteemed shareholders, dated 7 September 2021, on the planned suspension of trading on the shares of AXA Mansard Insurance Plc (“AXA Mansard” or the “Company”) on 09 September 2021, in order to effect the share reconstruction / redenomination of AXA Mansard shares, kindly note that the share reconstruction has now been effected, and the reconstructed shares have been credited to each shareholder’s account.

‘’The suspension of trading on the Company’s shares has also been lifted and the shares can now be traded. Please take this as notice in respect of the above.’’

What you should know:

  • A share reconstruction exercise also known as ‘reverse stock split’ is just a way of technically reducing the number of outstanding shares of a company and increasing its share price without affecting market value. For instance, a firm with 10 billion units of ordinary shares of 50k each with a market price of N5 can decide to reconstruct 2 shares into 1. This will reduce the firm’s number of issued share capital, but not the value of shares held by shareholders.
  • Consequently, AXA Mansard Insurance Plc’s entire issued share capital of 36,000,000,000 ordinary shares of 50 kobo each at N0.50 per share prior to the share capital reconstruction exercise was delisted from the Nigerian Exchange Limited (NGX) daily official list, while 9,000,000,000 ordinary shares of 50 kobo each at N2 per share arising from the share capital reconstruction were listed on the exchange’s daily official list.