IIF acquires 39.25% stakes in Royal Exchange

July 22nd, 2019

Royal Exchange Plc has notified the Nigerian Stock Exchange, its shareholders and the investing public that the InsuResilience Investment Fund (IIF) has acquired 39.25 per cent stake in the company.

InsuResilience Investment Fund (IIF) was set up on behalf of the German government by KfW and managed by Swiss based Impact Investment Manager, BlueOrchard Finance Limited (“BlueOrchard”).

REGIC is one of the largest non-life insurance companies in Nigeria. Through its activities, the IIF is expected to reach out to more than 1 million Nigerian farmers by 2025.

The investment has been approved by the regulator of REGIC, the National Insurance Commission and agreement to this effect signed by both parties.

“The history, team and commitment of REGIC to agriculture insurance make it a great addition to our portfolio. REGIC is uniquely positioned to capture the opportunity presented by 30 million under insured small scale farmers in Nigeria. We are thrilled to partner with and support REGIC with capital, technical assistance and our international network in the agriculture insurance space, with the objective to increase the resilience of small scale farmers to climate change“, says Ernesto Costa, Senior Vice-President Private Equity at BlueOrchard.

“REGIC has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance within that sector of the economy. Agriculture and retail insurance, we believe is the future of insurance and at Royal Exchange, we will continue to develop products and services to ensure that we remain relevant in this space. REGIC is determined to take advantage of growth initiatives available in the industry, while leveraging on technology to expand its revenue base and stronger bottom-line“says Kenny Ezenwani Odogwu, Chairman of Royal Exchange Plc.

Ernest & Young Nigeria acted as the exclusive financial due diligence advisors to both IIF and REGIC for this transaction. Udo Udoma & Belo-Osagie acted as the exclusive legal advisor to IIF while Sefton Fross acted as legal advisor to REGIC.

Luxembourg-based IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of the IIF is to contribute to the adaptation to climate change by improving access to and the use of insurance in developing countries.

REGIC is a wholly owned subsidiary of Royal Exchange Plc, licensed by the National Insurance Commission to offer the full range of general and special risks insurance products. With 100 years in the Nigerian market, REGIC has an enviable reputation for reliability, integrity, professionalism, technical competence and financial strength.

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