AfricInvest, a leading Pan-African asset management company has announced the acquisition of a minority stake in Royal Exchange General Insurance Company (REGIC). The investment was made through its private equity fund, FIVE, in the form of a subscription to a capital increase.
According to a notice issued by the company and filed with the Nigerian Exchange Limited (NGX), the new investment has already been approved by National Insurance Commission (NAICOM).
Following the recent investment, the Board of REGIC will be subsequently restructured to reflect this new reality. New directors from FIVE (the private equity arm of AfricInvest), will join the Board of REGIC, alongside Royal Exchange Group and Blue Orchard’s InsuResilience Investment Fund (IIF) that had earlier invested in the company in July 2019. These new directors are expected to bring their wealth of experience and expertise in their various fields into play and chart a new strategic direction for REGIC, especially as the company seeks to be among the top 3 general insurance companies in Nigeria within the next 5 years. The appointment of these new Directors is awaiting approval from the primary regulatory body, NAICOM.
The investment will avail REGIC the opportunity to expand its underwriting capacity in key priority areas considered as the future of insurance, such as the retail mass market, agricultural insurance and insurtech, among others. In this light, the firm will be empowered to participate in more large-ticket corporate transactions, diversify its existing business and product lines as well as diversify its delivery channels.
In addition, the firm (REGIC) disclosed that the recent investment will help strengthen its 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.
– Nairametrics