Annual Report 2020
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ANNUAL REPORT ACCOUNTS &2020 REGENCY ALLIANCE INSURANCE PLC O U R M I S S I O N TO CREATE WEALTH FOR ALL STAKEHOLDERS AND MITIGATE RISKS ASSOCIATED WITH IT. O U R C O R E V A L U E S PROFESSIONALISM INTEGRITY COMMITMENT EFFICIENCY WE EARN YOUR TRUST www.regencyalliance.com REGENCY ALLIANCE INSURANCE PLC RC 223946 Regency House, 2 Ebun Street, Gbagada Expressway Phase 1, Gbagada, Lagos. P.O.Box 70333 Victoria Island, Lagos Nigeria. Tel: 234 (1) 0700REGENCY [email protected] www.twitter.com/regencyalliancef www.facebook.com/regencyallianceinsurance REGENCY ALLIANCE INSURANCE PLC www.regencyalliance.com 2020 Annual Report & Accounts [email protected] TABLE O CONTENTS Our Company 2 Notice of eeting 3 Corporate Information 4 inancial Highlight irectors Certication 6 Statement of irectors Responsibilities 7 Chairmans Statement 9 Board of irectors 11 Report of External Consultant on Board Appraisal 1 anagement Sta 16 Report of the irectors 17 Corporate Goernance Report 2 anagement iscussion and Analysis 32 Audit Committee Report 33 Independent Auditors Report 34 Statement of Signicant Accounting Policies 3 Statement of inancial Position 60 Statement of Comprehensie Income 61 Statement of Changes in Euity 62 Statement of Cash lows 64 Notes to the inancial Statements 6 Enterprise Risk anagement 96 Assets/Liability anagement 111 Hypothecation 11 Segment Information 117 Other National isclosures 121 REGENCY ALLIANCE INSURANCE PLC www.regencyalliance.com 2020 Annual Report & Accounts 1 [email protected] OUR COPANY REGENCY ALLIANCE INSURANCE PLC is one of the leading Insurance companies in Nigeria and the est African subregion. ith oer 20years experience in the Nigerian insurance space, we remain unrialed in the General Insurance business market. e proide only the best insurance serice, cultiated from our deep underwriting expertise, superior claims handling and market experience. e oer a selection of customied Insurance products in collaboration with our Intermediaries and Technical Partners all oer the world. e hitherto were Regency Insurance Ltd., howeer following the merger and consolidation of four insurance companies in ebruary 2007 Regency Alliance Insurance Plc was born. rawing from technical expertise and knowledge of both local and international markets acuired in the past two decades, we are constantly innoating to proide een better serice to our customers. Our clientele is growing progressiely, and our business portfolio is expanding leading to the formation of subsidiaries. e are expanding our operations in est Africa, with a goal of unifying and growing the subregional insurance market Our Board of irectors consists of distinguished and eminently ualied persons from key sectors of the economy. Regency Alliance Insurance Plc is a publicly uoted company and listed on the Nigerian Stock Exchange market. REGENCY ALLIANCE INSURANCE PLC www.regencyalliance.com 2020 Annual Report & Accounts 2 [email protected] NOTICE O ANNUAL GENERAL EETING NOTICE IS HEREBY GIVEN that the 27th Annual General eeting of Regency Alliance Insurance Plc. will be held at the Conference Hall, Ground oor, The In line with the proisions of the Companies and Allied atters Act, 2020, one Plot 9, Gbagada Expressway, Gbagada, Lagos State on Thursday the r. att Osayaba Aikhionbare, OON will retire by rotation and being eligible 27th ay of ay 2021 at 11am. to transact the following business: oers himself for re election at the Annual General eeting. His prole is contained in page 13 of the Annual Report and Accounts for the year ended 1. To receie the Report of the irectors, the Audited inancial 31st ecember 2020. Statements for the year ended 31st ecember 2020 together with the Reports of the Auditors and the Audit Committee thereon. 2. To reelect irectors retiring by Rotation. The Board aer necessary due diligence is recommending the ratication 3. To ratify the appointment of the Non Executie irectors. of appointment of : 4. To disclose the remuneration of anagers of the Company. l r. onald ames Etim . To elect members of the Audit Committee. l Chief ale Taiwo, SAN 6. To authorise the irectors to x the remuneration of the Auditors. As Non Executie irectors of the Company, their Proles are on page 14 of ecial ine the Annual Report and Accounts for the year ended 31st ecember 2020. To consider and if thought t to pass the following as Ordinary The appointment of the new irectors is subect to the approal of NAICO. Resolution: 7. To approe the remuneration of irectors. In accordance with the proisions of the Companies and Allied atters Act 2020 any Shareholder may nominate another Shareholder as a member of the Audit Committee by giing notice in writing of such nomination to the Company Secretary at least twentyone (21) days before the Annual In iew of the preailing circumstance, Goernment directies on public General eeting. gathering and the Companys concern for the safety and wellbeing of Please note the proisions of the Nigerian Code of Corporate Goernance Shareholders, Employees, Clients and all Stakeholders and in compliance 201, in respect of members of the Audit Committee are expected to hae with the Guidelines of the Corporate Aairs Commission on the conduct of basic nancial literacy to be able to read inancial Statements. Public Companies Annual General eetings by Proxy, the Companys 27th Annual General eeting shall be by proxy only, In compliance with the irecties and Regulations of the goernment on maximum number Shareholders hae a right to ask uestions not only at the eeting, but also allowable for gathering and safety measures against the spread of Coid19, in writing prior to the eeting. Such uestions must be submitted to the the number in attendance shall be limited to 20 people. Company Secretary or sent to inforegencyalliance.com before close of work on or before Thursday the 20th day of ay, 2021. A member of the Company entitled to attend and ote is entitled to appoint a proxy to attend and ote instead of him. A proxy needs not be a member. A Proxy orm is attached to the Annual Report and Accounts. The proxy form In addition to the posted Annual Report compact discs, so copy of the can also be downloaded from the Companys website Annual Report will be mailed to all Shareholders who hae proided their www.regencyalliance.com Email addresses. The so copy can also be downloaded from the In compliance with the Corporate Aairs Commissions Guideline, Companys website www.regencyalliance.com or from the website of the attendance at the 27th Annual General eeting shall be by proxy only, Registrars , eristem Registrars and Probate serices shareholders are reuired to appoint any one of the underlisted persons as http://www.meristemregistrars.com their proxy: 1. r. Clem Baiye (Acting Chairman) 2. r. Biyi Otegbeye (G/CEO) To ensure Shareholders, clients and other stakeholders who will not be 3. rs. Anu Shobo (Company Secretary) attending the Companys 27th Annual General eeting physically watch the proceedings, the Annual General eeting will be streamed lie. or the Proxy orm to be alid for the purpose of the meeting, it must be Shareholders, clients and other stakeholders can log on to completed and deposited at the oice of the Registrars eristem Registrars www.regencyalliance.com to watch the lie streaming. and Probate Serices Limited, 213, Herbert acaulay ay, Yaba, Lagos not less than fortyEight (4) hours prior to the time of the meeting. The Proxy forms will be stamped at the expense of the Company proided BY ORER O THE BOAR they are duly completed and submitted as stipulated aboe. The Register of embers and Transfer Books of the Company will be closed from onday the 10th day of ay to riday the 14th day of ay 2021 (both days inclusie) for the purpose of reiewing and updating the register of members. Seeral iidend remains unclaimed or are yet to be presented for payment or to be returned to the Registrar for realidation. A schedule of members COPANY SECRETARY who hae Unclaimed iidend is attached to the Annual Report and RC/2013/NBA/0000000364 Accounts, such members are adised to write to or isit the Companys ATE THIS 14TH AY O APRIL, 2021 Registrars, eristem Registrars and Probate Serices Limited, 213 Herbert acaulay way, Ebute etta, Lagos, Lagos State. REGENCY ALLIANCE INSURANCE PLC www.regencyalliance.com 2020 Annual Report & Accounts 3 [email protected] CORPORATE INORATION : r. Clem Baiye (Acting Chairman) r. Biyi Otegbeye (anaging irector) r. Sammy Olaniyi (Executie) r. ehinde Oyadiran (Executie) Col. Aminu Isah ontagora (eceased) r. att Osayaba Aikhionbare, OON : Anu Shobo RC/2013/NBA/0000000364 : TAC PROESSIONAL SERVICES. (Chartered Accountants) Plot 22, Adebisi Oguniyi Crescent. O Oladimei Alao Street. Lekki Phase 1 Lagos RC/2012/ICAN/0000000032 : ALE TAIO CO. (Legal Practitioners) 9B ale Taiwo Close O PSSC Road agodo GRA Phase 2 RC/2014/NBA/000000012 : Regency Place 2 Ebun Street Gbagada Expressway Gbagada, Lagos. 00349907374 inforegencyalliance.com www.regencyalliance.com : irst Bank of Nigeria Plc Sterling Bank Plc enith Bank Plc Access Bank Plc : eristem Registrars and Probate Serices Limited 213, Herbert acaulay ay Sabo, Yaba Lagos : African Reinsurance Corporation AICA Reinsurance Limited Continental Reinsurance Limited : TA Consulting (Nigeria) Limited RC/2013/NAS/00000002723 . : RC 223946 . : RC/2013/00000000009 REGENCY ALLIANCE INSURANCE PLC www.regencyalliance.com 2020 Annual Report & Accounts 4 [email protected] INANCIAL HIGHLIGHTS THE GROUP