Regency Alliance Insurance Plc, a major player in Nigeria’s insurance industry has released its earnings forecast for Q4 2020 to the Nigerian Stock Exchange (NSE), with a profit after tax of N730.72 million.
While awaiting its Q3 2020 financials, the projected profit after tax figures is up by 32.75%, from N550.46 million recorded in Q2 2020 to a projected figure of N730.72 million for the last quarter of the year.
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Other key projected financial metrics which recorded an increase are:
- Profit before tax recorded a 28.3% increase from N670.11 million recorded in Q2 2020 to a projected sum of N859.67 million.
- Taxation grew by 7.8% from N119.65million recorded in Q2 2020 to a projected sum of N128.95 million
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Other key figures in the forecast for Q4 2020 include; the projected sums of N4.28 billion for Gross premium earned, N2.82 billion for Net premium, N855.9 million for Net claims incurred, N928.65 million for Underwriting/Management Expenses, and N487.3 million for Net cash generated from operating activities.
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Backstory
Regency Alliance Insurance Plc had earlier announced 28th October 2020, as the date for its board meeting, to consider its Q3 2020 financials for the period ended 30th September 2020. In lieu of this, its closed period will be from October 13, 2020.
On this basis, the projected key financial metrics were compared with the last reported financials in Q2 2020.
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What this means
The increase in projected Q4 2020 might be connected to the drive to meet up with recapitalization requirements for insurance firms in Nigeria. Recall that Nairametrics had earlier reported on how the aforementioned firm had planned to raise more capital through various strategic means including issuing a N10 billion additional ordinary shares at N0.50K each.
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Theoretically, the projected increase in profit is realizable when a number of factors such as optimization of underwriting skills, lower claims ratio, higher gross premium, and efficient optimization of technology, amongst others are satisfied.
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What you should know
Regency Alliance Insurance Plc is an insurance company in Nigeria with its headquarters in Lagos. It is licensed to cover all classes of non-life insurance. The company also has business interests in property investments in the form of real estate development and leasing, finance leasing, retail and microfinance banking, and vehicle tracking and fleet management services.
