Business and Economy

AfricInvest acquires minority stake in Royal Exchange Insurance via Finanacial Investment Vehicle

AfricInvest, a Pan-African asset management platform covering Private Equity, Venture Capital, and Private Credit, announced the acquisition of 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 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 the leading global impact investing firm BlueOrchard Finance Ltd. The IIF is an initiative created by KfW, the German Development Bank, on behalf of the German Ministry for Economic Cooperation and Development.

Kenneth Ezenwani Odogwu, Chairman of Royal Exchange Group 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 Mr. Ike Chioke, 1 I am confident that we will continue to provide relevant services and products to a new generation of insurance customers.”

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.

Mehdi Gharbi, Senior Partner at AfricInvest and Co-head of FIVE said, “REGIC represents a perfect fit with the investment strategy of FIVE as it combines return and impact. 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.”

The REGIC transaction marks FIVE’s first investment in the insurance sector, and its first in Nigeria, adding a seventh portfolio company to the fund. This partnership will contribute to financial inclusion in Nigeria, with an innovative insurance offer for the underinsured.

The Company was advised by Alkebulan for the fundraising and AfricInvest was advised by the law firm Uubo.

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