An investment fund InsuResilience Investment Fund (IIF) has acquired 39.25 per cent stake in Royal Exchange General Insurance Company Limited (REGIC)Plc, one of the nation’s largest non-life insurance companies. IIF was set up on behalf of the German government by KfW and managed by Swiss based impact investment manager, BlueOrchard Finance Limited.
According to a statement released recently to the Nigerian Stock Exchange (NSE), Royal Exchange Plc, which is the parent firm of REGIC, said through its activities, the IIF is expected to reach out to more than one million Nigerian farmers by 2025.
According to the firm, the investment has been approved by the National Insurance Commission (NIACOM). The IIF and REGIC have signed an agreement according to which the Fund will acquire a 39.25 per cent equity stake.
Speaking on the acquisition, Senior Vice-President Private Equity at BlueOrchard, Ernesto Costa, said: “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 underinsured 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.“
Also speaking, Chairman of Royal Exchange Plc, Kenny Odogwu, said: “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.”
IIF further explained that its overall objective is to contribute to the adaptation to climate change by improving access to and the use of insurance in developing countries. The specific objective of the fund is to reduce the vulnerability of low-income households and micro, small and medium enterprises (MSME) to extreme weather events.
“REGIC, a subsidiary of Royal Exchange Plc, is a leading player in agriculture insurance. The proceeds of the investment will help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, hereby extending its outreach to low income farmers,” the company said.