Royal Exchange General Insurance Company (REGIC) has sold a N3.6 billion minority stake in the insurance firm to AfricInvest.
AfricInvest is a pan-African asset management company, while REGIC is an insurance firm underwriting general insurance business.
The investment by AfricInvest was made through its private equity fund, FIVE, in the form of a subscription to a capital increase.
Speaking on the new investment by AfricInvest in Lagos, the chairman of Royal Exchange Plc, Mr. Kenneth Ezenwani Odogwu, said 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 this push for additional working capital by REGIC.
The additional working capital, according to him, 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 are the future of insurance.
“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. The investment by AfricInvest and Blue Orchard is an important inflection point on this journey.
“Under the auspices of a new board led by a seasoned professional like Mr. Ike Chioke (awaiting NAICOM approval), I am confident that we will continue to provide relevant services and products to a new generation of insurance customers,” he pointed out.
Senior partner at AfricInvest and Co-head of FIVE, Mehdi Gharbi, commented that, “REGIC represents a perfect fit with the investment strategy of FIVE as it combines return and impact. REGIC’s expansion plan will allow the company to achieve sustainable and strong growth, facilitating access to insurance while creating value for stakeholders.”