Royal Exchange General Insurance Company Limited (REGIC), having successfully secured a first equity investment of $10 million from the InsuResilience Investment Fund (IIF) of German Development Bank (Kfw) in October 2019, the underwriting firm is on the way to meeting the new minimum capital requirement with another investment due to be completed in second quarter 2020.
The first investment resulted in a N3.6 billion injection, in exchange for a 39.25 percent equity stake in REGIG, which strengthened the company’s balance sheet for bigger businesses.
Ben Agili, managing director/CEO, REGIC who made the disclosure when the company hosted NCRIB Lagos Area Committee’s Annual Meeting said the company was making significant progress in securing the required capital to comply with the new NAICOM recapitalisation rules and is confident that new investment will be completed by Q22020.
According to him, towards end of 2019, a number of investors issued letters of investment interest, saying that REGIC was facilitating a detailed due diligence exercise for the benefit of these investors.
Agili said in addition to achieving the required shareholders’ funds from a regulatory perspective, the increased capital will allow REGIC to increase its risk retention and grow her investment income
He said REGIC, as part of her business diversification strategy has made significant progress in championing product innovations in the following areas, amongst others: Agricultural Insurance; Digital/Mobile Insuranc; .Royal Titanium Motor vehicle insurance; as well as Entertainment Insurance
“Our new corporate strategy now hinges on the use of digital technology to expand our operations and service delivery by disrupting the market place. Innovation now plays a critical part of our corporate DNA, stating that we aim to evolve as an insurance company with insurtech capabilities, he said
“Our journey for corporate renewal and operational transformation is targeted at building an enduring insurance company of tomorrow; one which is able to disrupt itself today, innovate and build upon its current foundation to remain in business firstly and secondly contend for the spot of market leadership”.
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