Recapitalisation: Shareholders urge Regency to retain dividend
Shareholders of Regency Alliance Plc have urged the management of the company to retain the dividend for the 2018 financial period, as part of its move to raise additional capital for the company.
They made the suggestion during the company’s 25th annual general meeting in Lagos. The Chairman of the company, Amb Baba Gana Kingibe, had announced a dividend payout of N200.062m for the financial year under review.
He said, “As a way of appreciating our esteemed shareholders, your board is recommending a total dividend payout of N200.062m, representing 3k per 50k share for eligible shareholders.”
But the shareholders suggested that the dividends should be ploughed back into the business in lieu of pending recapitalisation.
The result he presented showed that the company’s gross premium production rose by 1.30 per cent from N3.368bn in 2017 to N3.408bn in 2018.
The effect of increased premium generation, he added, was, however, significantly eroded by the 24.30 per cent increase in net claims, 8.93 per cent increase in underwriting expenses and 3.94 per cent increase in management expenses when comparing the 2018 figures with that of 2017.
He said there was an increase of 24.37 per cent in the investment income of the company, which was reflective of the high deposit rates and government yield rates offered during the year.
The chairman disclosed that there was an increase of 6.68 per cent in profit after tax from N196.475m in 2017 to N209.599m in 2018.
“It is expected that our company, building on the gains of past financial discipline and strategic positioning, will continue to produce better results in the future,” he said.
The chairman said the total asset base of the company grew by 6.48 per cent from N7.345bn in 2017 to N7.821bn in 2018.
“This was due primarily to the effect of the foreign exchange translation loss arising from consolidating RegencyNem Insurance Limited Ghana’s account.”
After presenting the 2018 performance of the company, the chairman announced his departure from the board. He expressed his gratitude to the company’s board, management, staff and the shareholders for their support in the last nine years.