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Royal Exchange General Insurance Company Limited (REGIC) has said it is on its way to meeting the new minimum capital requirement with another investment targeted to be concluded in second quarter 2020, having secured a first equity investment of $10 million from the InsuResilience Investment Fund (IIF) of German Development Bank (Kfw) in October 2019,.
The Managing Director/CEO, REGIC, Ben Agili, who revealed this at the Nigerian Council of Registered Insurance Brokers (NCRIB) Lagos Area Committee’s Annual Meeting, hosted by REGIC said it was making significant progress in garnering the required capital to meet the recapitalisation directive stipulated by the National Insurance Commission (NAICOM) and is positive that new investment will be completed by second quarter 2020.
The first investment resulted in a N3.6 billion injection, in exchange for a 39.25 percent equity stake in REGIC, aimed at boosting the company’s balance sheet for bigger businesses.
Agili explained that towards end of 2019, a number of investors issued letters of investment interest, as REGIC was facilitating a detailed due diligence exercise to benefit investors.
He 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 added that 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.
“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”.
