Africinvest, an asset management company, has acquired a minority stake in Royal Exchange General Insurance Company (REGIC).
Speaking at a press. Conference , the Managing Director of REGIC, Mr Ben Ajili, said that the investment was made through its evergreen private equity fund , five, in the form of a subscription to a capital increase.
According to him, the desire to participate in more large-ticket corporate transactions, diversify existing business and product lines as well as diversification of delivery channels were some of the key drivers behind the push for additional working capital by REGIC.
He stated: “The additional working capital will also enable the company to expand its underwriting capacity in key business areas such as the retail mass market, agricultural insurance and insurtech, which is the future of insurance.
“This new investment, which has already been approved by the National Insurance Commission, NAICOM, will, in addition to supporting the enhancement of REGIC’s underwriting capacities, strengthen the company’s execution capabilities at top and middle management in order to ensure the successful implementation of an ambitious growth plan for the company within the next 5-7 years.
FIVE has joined the shareholding of REGIC alongside the Royal Exchange Group and Blue Orchard’s InsuResilience Investment Fund (IIF), which had earlier invested in the Company in July 2019.
The investment by AfricInvest (FIVE Fund) will also result in the restructuring of the Board composition of REGIC, with the expected appointment of new directors to the Board of REGIC, pending approval by the regulator, NAICOM.” Speaking on the new investment by AfricInvest, the Chairman of Royal Exchange Plc, Mr. Kenneth Ezenwani Odogwu, said: “Being the first insurance company in Nigeria and having been in business for over 100 years, I am excited and hopeful that we will be just as prominent for the next 100 years.”
