Regency Alliance Insurance Plc has reported a sharp increase in claims payment, rising by 242.59 per cent to N3.14 billion in the first half of 2025. The figure, contained in the company’s unaudited financial results filed with the Nigerian Exchange, reflects the insurer’s growing obligations to policyholders during the review period.
According to the results, claims paid by the company stood at N3.14 billion in June 2025, compared to N916.79 million in the same period of 2024. This surge in claims expenses, though demonstrating the company’s commitment to meeting obligations, weighed heavily on its earnings despite growth in premiums and investment income.
Profit Before Tax fell to N321.17 million in June 2025, down from N911.25 million reported in June 2024. Profit After Tax also dropped to N240.20 million, compared to N740.45 million recorded in the prior year. Industry analysts note that rising claims often pressure profitability in the short term, even when other income lines remain strong.
Despite the decline in profits, Regency Alliance recorded a strong performance in revenue generation. Gross premiums received rose significantly by 63.8 per cent to N6.15 billion in June 2025, up from N3.76 billion in the same period of 2024. This indicates increased underwriting activity and growing demand for insurance cover in different segments.
In addition, net investment income rose by 13.2 per cent, climbing to N837.98 million in June 2025 from N740.25 million recorded in the previous year. The growth reflects steady returns on the company’s investments despite challenging market conditions.
The company also recorded improvements in its balance sheet. Total assets grew by 17.8 per cent to N22.47 billion in June 2025, compared to N19.07 billion in June 2024. However, total liabilities also increased by 24.8 per cent, rising to N8.25 billion in June 2025, up from N6.61 billion in the same period of 2024.
The results show that Regency Alliance is expanding its business operations and responding to higher claims obligations, a development common in periods of rising risk exposures. While the increase in claims reduced net earnings, stakeholders believe that the growth in premiums and investment income positions the company for stronger performance in the long term, especially if claims stabilise in the second half of the year.
Industry watchers say the insurance sector in Nigeria has been experiencing rising claims due to increased economic activities, regulatory compliance, and a growing awareness of insurance among individuals and businesses. For Regency Alliance, the ability to meet higher claims while growing revenue is seen as a sign of resilience, even though profitability has been affected in the short term.
