REGENCY ALLIANCE INSURANCE : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

REGENCY ALLIANCE INSURANCE PLC

(RC 223946)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

TABLE OF CONTENTS
Directors Certification	2
Statement of Significant Accounting Policies	5
Statement of Financial Position	52
Statement of Comprehensive Income	53
Statement of Changes in Equity	54
Statement of Cash Flows	56
Notes to the Financial Statements	57

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

CERTIFICATION PURSUANT TO SECTION 60[2] OF THE INVESTMENT AND SECURITIES ACT NO. 29 OF 2007

We the undersigned hereby certify the following with regards to our Consolidated Financial Statements for the period ended 30, September 2023, that:

1. We have reviewed the Report.
2. To the best of our knowledge, the Report does not contain:
3. 1. Any untrue statement of a material fact, or
   2. Omit to state a material fact, which would make the statements misleading in the light of the circumstances under which such statements were made.
4. To the best of our knowledge, the financial statement and other financial information included in the report fairly present in all material respects the financial condition and results of operation of the Company as of, and for the period presented in the report.
5. We:
6. 1. Are responsible for establishing and maintaining internal controls.
   2. Have designed such internal controls to ensure that material information relating to the Company and its consolidated subsidiaries are made known to such officers by
      others within those entities particularly during the period in which the periodic reports are being prepared;
   3. Have evaluated the effectiveness of the Company's internal controls, as of date,

within 90 days prior to the report;

1. 1. Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation;
2. We have disclosed to the auditors of the Company and its audit committee:
3. 1. All significant deficiency in the design or operation of internal controls which would adversely affect the Company's ability to record, process, summarize and report financial data and have identified for the Company's auditors any material weakness in internal controls, and
   2. Any fraud, whether or not material, that involves management or other employees

who have significant role in the Company's internal controls;

1. We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

MR. BIYI OTEGBEYE	MR.KEHINDE OYADIRAN
FRC/2013/NBA/00000003749	FRC/2013/ICAN/00000003559
GROUP MD/CEO	GROUP CFO

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

CORPORATE INFORMATION

DIRECTORS	:	Mr. Clem Baiye (Chairman)
		Mr. Biyi Otegbeye (Managing Director)
		Dr. Sammy Olaniyi (Executive)
		Mr. Kehinde Oyadiran (Executive)
		Mr. Matt Osayaba Aikhionbare, OON (Non-Executive Director)
		Chief Wale Taiwo SAN,FCArb (Non-Executive Director)
		Mr. Donald James (Indpt. Non-Executive Director)
COMPANY SECRETARY	:	Anu Shobo
		FRC/2013/NBA/00000003654
AUDITORS	:	TAC PROFESSIONAL SERVICES.
		(Chartered Accountants)
		Plot 22, Adebisi Oguniyi Crescent.
		Off Oladimeji Alao Street.
		Lekki Phase 1 Lagos
		FRC/2012/ICAN/00000000325
SOLICITORS	:	WALE TAIWO & CO.
		(Legal Practitioners)
		9B Wale Taiwo Close
		Off PSSDC Road
		Magodo GRA Phase 2
		FRC/2014/NBA/00000008128
HEAD OFFICE	:	Regency Place
		2 Ebun Street
		Gbagada Expressway
		Gbagada, Lagos.
		08053499073-74
		[e-mail]
		www.regencyalliance.com
BANKERS	:	First Bank of Nigeria Plc
		Sterling Bank Plc
		Zenith Bank Plc
		Access Bank Plc
REGISTRAR	:	Meristem Registrars Limited
		213 Herbert Macaulay Way
		Sabo, Yaba
		Lagos
RE-INSURERS	:	African Reinsurance Corporation
		WAICA Reinsurance Limited
		Continental Reinsurance Limited
ACTUARY	:	O & A Hedge Actuarial Consulting
		FRC/2019/00000012909
COMPANY RC NO.	:	RC 223946
COMPANY FRC REG. NO.	:	FRC/2013/0000000000598

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

Shareholding Structure and Free Float Status
Company Name:	Regency Alliance Insurance Plc
Board Listed:	Premium Board
Period End:	30-Sep-23
Reporting Period:	Ended September 30, 2023
Share Price at end of reporting period:	N0.41
Description	September 30, 2023	Septembet 30, 2022
	Unit	Percentage	Unit	Percentage
Issued Share Capital	6,668,750,000	100	6,668,749,800	100
Substantial Shareholdings (5% and above)
ALEXANDER REISS CONS. LTD	633,531,250	9.5	633,531,250	9.5
OTEGBEYE OLUBIYI	789,328,879	11.84	789,328,879	11.84
Total Substantial Shareholdings	1,422,860,129	21.34	1,422,860,129	21.34
Directors' shareholdings (Direct)
OLANIYI SAMMY	43,580,457	0.00654	43,580,457	0.00654
KEHINDE OYADIRAN	206,250	0.00309	206,250	0.00309
CLEM BAIYE	1,000,000	0.01500	1,000,000	0.01500
MATT OSAYABA AKHIONBARE	-	0.00	-	0.00000
COL. ISAH AMINU KONTAGORA	-	0.00	-	0.00000
CHIEF WALE TAIWO, SAN	14,349,235	0.21517	14,349,235	0.21517
MR. DONALD JAMES ETIM	-
Total Directors' Shareholdings	59,135,942	0.23979	59,135,942	0.23979
Other Influential Shareholdings:
Free Floats in Units and Percentage	5,186,753,929	78.42	5,186,753,729	78.42
Free Floats in Value (N)	2,126,569,110.89		2,126,569,028.89

Declaration: Regency Alliance Insurance Plc with the Nigerian Exchange Limited's free

a free float value of N2,126,569,110.89 (78.42%) as at September 30, 2023 is compliant with float requirements for companies listed on the Premium Board.

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

NOTES TO THE ACCOUNTS

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. GENERAL INFORMATION
2. Reporting Entity
   The company was incorporated in Nigeria under the Companies and Allied Matters Decree 1990 as Regency Insurance Company Limited on the 16th day of June 1993 and was licensed by the National Insurance Commission (NAICOM) to underwrite all classes of Non-Life insurance business. On the 11th day of March 2005, the company obtained license to underwrite Life Insurance business in addition to the Non-Life Insurance business thereby becoming a composite insurance company. However, after a successful merger with three other companies in 2007, the company's name was changed to Regency Alliance Insurance Plc.
   The company, which is listed on the Nigerian Stock Exchange, was registered and now licensed to underwrite all classes of Non-Life Insurance business risk associated with accident, fire, marine and oil and gas among others. The registered address of the company is at 2, Ebun Street, Gbagada Lagos, Nigeria.
3. Going Concern
   The financial statements of Regency Alliance Insurance Plc and it's subsidiaries have been prepared on a going concern basis. The directors of the company have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. The annual financial statement of the group for the period ended 30 September 2023 comprises the parent company and its subsidiaries.
4. Principal Activities
   Regency Alliance Insurance Plc. and its subsidiaries (the Group) are engaged in various business lines ranging from general accident insurance, oil/gas insurance, property leasing and investment and banking business.
   The underwriting strategy adopted by the group attempts to ensure that the underwritten risks are well diversified in terms of type, amount of risk and industry.
   The Company's principal activity continues to include risk management and claims advisory services to corporate and retail customers in Nigeria. The company's insurance claims received prompt and effective services to all numerous clients and the company takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures. The investment portfolio of the company ranges from financial instruments, investment in unquoted shares and subsidiaries.
5. Authorisation For Issue
   The consolidated financial statements, including the assets and liabilities of the Company and its Subsidiaries, and were approved for issue by the Board on 26th October 2023.

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

2.0. Basis of Preparation

1. Statement of Compliance with International Financial Reporting Standards
2. 
   The consolidated and separate financial statements of the group have been prepared in accordance with and comply with International Financial Reporting Standards (IFRSs), as issued by the International Accounting Standards Board (IASB) and adopted by the Financial Reporting Council of Nigeria.
   Statement of compliance
   The consolidated and separate financial statement of the group comply with, International Financial Reporting Standards (IFRS), Companies and Allied Matters Act CAP C20 LFN 2004, Financial Reporting Council Act 2011, Investment and Securities Act 2007, Insurance Act 2003 of Nigeria, relevant National Insurance Commission (NAICOM) guidelines and circulars, the Banking's and Other Financial Institutions Act of Nigeria, and relevant Central Bank of Nigeria circulars to the extent that these laws are not in conflict with the requirement of IFRS.
3. Basis of Measurement
4. • 
     These financial statements have been prepared on the historical cost basic except for the following:
   • Non-derivativefinancial instruments, carried at fair value through profit or loss, are measured at fair value
   • Available-for-salefinancial assets are measured at fair value through equity. However, when the fair value of the Available-for-Sale financial assets cannot be measured reliably, they are measured at cost less impairment.
   • The liability for defined benefit obligation is recognised as the present value of the defined obligation less the fair value of the plan assets.
   • The plan assets for defined benefit obligations are measured at fair value
   • Assets and Liabilities held for trading are measured at fair value
   • Assets and Liabilities held to maturity are measured at amortised cost less impairment
   • Loans and Receivables are measured at amortised cost less impairment.
   • Insurance Contracts are measure at present value
5. Judgment, Estimates and Assumptions
6. 
   The preparation of financial statements requires directors to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
   These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances.

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

The results of which forms the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if their revision affects only that period or if there revision affects both current and future periods.

2.3.1 Critical Accounting Judgments and Estimates

Critical accounting estimates are those which involve the most complex or subjective judgments or assessments, and relate to general insurance reserves, the determination of fair value for financial assets and liabilities, impairment charges, the determination of fair values of assets and liabilities attributable to business combinations, deferred policy acquisition costs and deferred taxes.

In each case, the determination of these items requires management to make informed judgments based on information and financial data that may change in future periods. Because of the uncertainties involved in such judgments, actual outcomes and results may differ from assumptions and estimates made by management.

a) Fair value of financial assets and liabilities

All financial assets and liabilities are recorded initially at fair value. Subsequently, quoted equity financial assets, financial assets and liabilities at fair value through profit or loss are carried at fair value , as of the reporting date. All other financial instruments are carried at amortized cost, with their fair values disclosed.

b) Fair value of unquoted equity financial instruments

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases, the fair values are estimated from observable data using valuation models. The models used to determine fair values are validated and periodically reviewed by quailed personnel independent of those that sourced them. All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. Changes in assumptions about these factors could affect the reported air value of the relevant securities.

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

d) Liabilities arising from Insurance Contract:

1. Claims arising from non-life insurance contracts

Liabilities for unpaid claims are estimated on a case by case basis. The liabilities recognized for claims fluctuate based on the nature and severity of the claim reported. Claims incurred but not reported (IBNR) are determined using statistical analyses which arise from the claims development tables in respect of not less than five (5) years' experience. The Group deems liabilities reported as being adequate since such liabilities have been subjected to the liability adequacy test by certified actuary.

1. Unexpired risk and unearned premium

In determining unearned premium, the policy is taken to be evenly spread across the period of cover for all policies except engineering policies where policies are skewed towards the later policy coverage period.

e) Impairment of Trade Receivables

In accordance with the accounting policies on financial assets, the Group tests annually whether trade receivable has suffered any impairment. In respect of premium receivables, the group makes allowances for amounts not collected as at time of preparing its financials. The carrying amount of loans and receivables is reduced through an impairment allowance determined using an analytical method based on knowledge of each loan group or receivable.

f) Deferred Acquisition Costs

Deferred acquisition costs (DAC) generally consist of commissions, underwriting expenses and policy issuance costs. The amount of acquisition costs to be deferred is dependent on judgments as to which issuance costs are directly related to and vary with the acquisition.

The related asset is amortized over the premium earning pattern for non-life.

Those direct and indirect costs incurred during the financial year arising from the writing or renewing of insurance contracts and all other acquisition costs are recognized as an expense when incurred.

DAC for general insurance are amortized over the period in which the related revenues are earned. The reinsurers' share of deferred acquisition costs is amortized in the same manner as the underlying asset amortization is recorded in the statement of comprehensive income.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period and are treated as a change in an accounting estimate under as required by IAS 8..

An impairment review is performed at each reporting date or more frequently when an indication of impairment arises. When the recoverable amount is less than the carrying value, an impairment loss is recognized in the statement of comprehensive income. DAC are also considered in the liability adequacy test for each reporting period.

DAC are derecognized when the related contracts are either settled or disposed off.

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REGENCY ALLIANCE INSURANCE PLC

UN-AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

1. Deferred taxes

Deferred income tax liabilities are recorded for temporary differences, which are based on the difference between financial statement carrying amounts and income tax bases of assets using enacted income tax rates and laws.

The utilization of deferred tax assets arising from temporary differences depends on the generation of sufficient taxable profits in the period in which the underlying asset or liability is recovered or settled.

(h) Regulation

The Group is regulated in Nigeria by the National Insurance Commission (NAICOM) under the National Insurance Act of Nigeria. The Act specifies certain provisions which have impact on financial reporting as follows:

1. section 21 (1) requires maintenance of contingency reserves at specified rates as set out under note 3.28 to cover fluctuations in securities and variation in statistical estimates;
2. section 10(3) requires insurance companies in Nigeria to deposit 10 per centum of the minimum paid up share capital with the Central Bank of Nigeria.
3. section 25 (1) requires an insurance company operating in Nigeria to invest and hold investments in Nigeria assets equivalent to not less than the amount of policy holders' funds in such accounts of the insurer. Note 16 sets out assets allocation that covers policy holders' funds.
4. the requirement to provide 10 per cent for outstanding claims in respect of claims incurred but not reported at the end of the year under review under section 20 (1b). However, claims incurred but not reported liabilities have been estimated in line with accounting policy 3.17 to comply with IFRS.
   Section 59 of the Financial Reporting Council of Nigeria Act, (FRCN Act) provides that in matters of financial reporting, if there is any inconsistency between the FRCN Act and other Acts which are listed in section 59(1) of the FRCN Act, the FRCN Act shall prevail. The Financial Reporting Council of Nigeria acting under the provisions of the FRCN Act has adopted IFRS as the national financial reporting framework of Nigeria. Consequently, the provisions of section 20(1b) of the National Insurance Act, described in(iv) above which conflict with the provisions of IFRS have not been adopted:
   Significant accounting policies are defined as those that are reflective of significant judgments and uncertainties, and potentially give rise to different results under different assumptions and conditions The accounting policies set out below have been consistently applied to all periods presented in these financial statements.

These policies have been consistently applied to all years presented unless otherwise stated.

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