AfricInvest in Nigerian insurance deal
AfricInvest, a pan-African asset management platform covering private equity, venture capital, and private credit, has acquired a minority stake in the Nigerian insurance company Royal Exchange General Insurance Company (REGIC). The investment was made through its evergreen private equity fund, FIVE (Financial Inclusion Vehicle), in the form of a subscription to a capital increase.
REGIC, one of the largest non-life insurance companies in Nigeria, was established in 2008, as part of the longstanding Nigerian group, Royal Exchange Plc, which has been operating for more than a century. FIVE has joined the shareholding of REGIC alongside the Royal Exchange Group and the InsuResilience Investment Fund (IIF), managed by global impact investing firm BlueOrchard Finance Ltd.
REGIC is rolling out its new strategy, widening its customer base by reinforcing its digital footprint, and deploying a more comprehensive retail strategy aiming at a unique positioning and product offering in agribusiness and insurtech. In addition to supporting the enhancement of REGIC’s underwriting capacities, FIVE’s investment has resulted in the reinforcement of the company’s board with seasoned directors possessing complementary skill sets, and the strengthening of its execution capabilities at top and middle management in order to ensure the successful implementation of its ambitious growth plan.
Speaking on the new investment by AfricInvest, the chairman of Royal Exchange Plc, 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. The investment of AfricInvest and BlueOrchard is an important inflection point on this journey. Under the auspices of a new board led by a seasoned professional Ike Chioke, I am confident that we will continue to provide relevant services and products to a new generation of insurance customers.”
Mehdi Gharbi, senior partner at AfricInvest and co-head of FIVE commented, “REGIC represents a perfect fit with the investment strategy of FIVE as it combines return and impact. Awaiting NAICOM approval REGIC’s expansion plan will allow the company to achieve sustainable and strong growth, facilitating access to insurance while creating value for stakeholders. I’m excited to join REGIC’s board and to contribute alongside my colleagues to the emergence of a new champion in the Nigerian insurance market.”
Ernesto Costa, head of private equity investments at BlueOrchard and representative of IIF on the board of REGIC added, “We are delighted to welcome an experienced and like-minded investor such as AfricInvest. We look forward to teaming up with them and Royal Exchange Plc, strengthening REGIC’s retail capabilities and contributing to increasing the resilience of smalls-cale farmers, SMEs and households to the effects of climate change.”
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