REGENCY ALLIANCE INSURANCE : AUDITED FINANCIAL STATEMENT FOR 2021

REGENCY ALLIANCE INSURANCE PLC

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021

TABLE OF CONTENTS

Directors Certification 2

Corporate Information 3

Statement of Directors' Responsibilities 4

Report of the Directors 5

Corporate Governance Report 17

Management Discussion and Analysis 34

Audit Committee Report 35

Independent Auditors' Report 36

Statement of Significant Accounting Policies 39

Statement of Financial Position 84

Statement of Comprehensive Income 85

Statement of Changes in Equity 86

Statement of Cash Flows 88

Notes to the Financial Statements 89

Enterprise Risk Management 116

Assets/Liability Management 139

Hypothecation 144

Segment Information 146

Other National Disclosures 1

Page 1

CERTIFICATION PURSUANT TO SECTION 60(2)

OF INVESTMENT AND SECURITIES ACT NO.29 OF 2007

We the undersigned hereby certify the following with regards to our Audited Financial Statements for the year ended December 31, 2021 that:

We have reviewed the report;

To the best of our knowledge, the report does not contain:

Any untrue statement of a material fact, or omit to state a material fact, which would make statement, misleading in the circumstances under which such statement were made;

To the best of our knowledge, the financial statement and financial information included in the report fairly present in all material respect the financial condition and results of operations of the company as of , and the period presented in the report.

We:

Are responsible for establishing maintaining internal control,

Having designed such internal control to ensure that material information relation to the company and its consolidated subsidiary is made know to such officers by others within those entries particularly during the period in which the periodic reports are prepared;

Have evaluated the effectiveness of the company's internal controls as of date within 90 days prior to the report;

Have presented in the report our conclusion about the effectiveness of our internal controls based on our evaluation as of the that date;

We have disclosed to the auditors of the company and audit committee:

All significant deficiencies in the design or operation of internal control which would adversely affect the company's ability to record, process, summarized and report financial data and have identified for the company's auditor any material weakness in the internal control, and

Any fraud, whether or not material, that involves management or other employees who have significant role in the company's internal control;

We have identified in the report whether or not there were significant change in internal control or other factors that could significantly affect internal controls subsequent to the date of our evaluate, including any corrective action with regard to significant deficiencies and material weakness.

MR. BIYI OTEGBEYE	MR.KEHINDE OYADIRAN
FRC/2013/NBA/00000003749	FRC/2013/ICAN/00000003559
GROUP MD/CEO	GROUP CFO
Page 2

CORPORATE INFORMATION

DIRECTORSCOMPANY SECRETARYAUDITORSSOLICITORSHEAD OFFICEBANKERSREGISTRARRE-INSURERSACTUARYCOMPANY RC NO.

COMPANY FRC REG. NO.

:

Mr. Clem Baiye (Acting Chairman) Mr. Biyi Otegbeye (Managing Director) Dr. Sammy Olaniyi (Executive)

Mr. Kehinde Oyadiran (Executive) Mr. Matt Osayaba Aikhionbare,ON Chief Wale Taiwo SAN

Mr. Donald James (Indpt. Non Exécutive Directory)

:

Anu Shobo FRC/2013/NBA/00000003654

:

TAC PROFESSIONAL SERVICES.

(Chartered Accountants)

Plot 22, Adebisi Oguniyi Crescent. Off Oladimeji Alao Street.

Lekki Phase 1 Lagos FRC/2012/ICAN/00000000325

:

WALE TAIWO & CO.

(Legal Practitioners) 9B Wale Taiwo Close Off PSSDC Road Magodo GRA Phase 2 FRC/2014/NBA/00000008128

:

Regency Place 2 Ebun Street Gbagada Expressway Gbagada, Lagos. [e-mail]

:

First Bank of Nigeria Plc Sterling Bank Plc Zenith Bank Plc Access Bank Plc

:Meristem Registrars Limited 305 Herbert Macaulay Way Sabo, Yaba

Lagos

:

African Reinsurance Corporation WAICA Reinsurance Limited Continental Reinsurance Limited

:

TAF Consulting (Nigeria) Limited FRC/2013/NAS/00000002723

:

RC 223946

:

FRC/2013/0000000000598

STATEMENT OF DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors of Regency Alliance Insurance Plc are responsible for the preparation of the consolidated and separate financial statements that present fairly the financial position of the Group and Company as at 31 December 2021, and the results of its operations, cash flows and changes in equity for the year then ended, in compliance with International Financial Reporting Standards ("IFRS") and in the manner required by the Companies and Allied Matters Act (CAMA),2020, Insurance Act 2003 and the Financial Reporting Council of Nigeria Act, 2011.

In preparing the financial statements, the Directors are responsible for:

properly selecting and applying accounting policies: presenting information, including accounting policies, in a manner that provides relevant reliable, comparable and understandable information;

providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group and Company's financial position and financial performance; and

making an assessment of the Group's and Company's ability to continue as a going concern.

The Directors are responsible for: designing, implementing and maintaining an effective and sound system of internal controls throughout the Group and Company;

maintaining adequate accounting records that are sufficient to show and explain the Group and Company's transactions and disclose with reasonable accuracy at any time, the financial position of the Group and Company, and which enable them to ensure that the financial statements of the Group and Company comply with IFRS;

maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS;

taking such steps as are reasonably available to them to safeguard the assets of the Group and Company; and preventing and detecting fraud and other irregularities.

The Directors have assessed the Group's ability to continue as a going concern and have no reason to believe the Group and Company will not remain as a going concern in the year ahead.

The consolidated and separate financial statements of the Group and Company for the year ended 31 December 2021 were approved by the Directors on 08 March 2022.

On behalf of the Directors

……………………………… DR. SAMMY OLANIYI DIRECTOR FRC/2013/CIIN/00000003716

…………………………… ..

MR. KEHINDE OYADIRAN DIRECTOR FRC/2013/ICAN/00000003559

DATED THIS 08TH DAY OF MARCH 2022