Royal Exchange Insurance strategises into the future
With its eyes on the future, Royal Exchange Insurance Company Limited, a subsidiary of Royal Exchange Plc, has taken a bold step into the future by entering into strategic alliances with some stakeholders in the agriculture industry with a view to driving insurance within that sector of the Nigerian economy. This, the company has done, by concluding the process of the acquisition of 39.25% of its stake by InsuResilience Investment Fund (IIF), an institution of German Government KfW and managed by Blue Orchard Finance Limited, a Swill based impact investment manager.
This investment, according to the company, was to spur its growth by increasing its underwriting capacity in the agriculture sector.
In his comment, Kenny Odogwu, Chairman, Royal Exchange Insurance Company Limited, said the company entered into this strategic alliance because of its belief that agriculture and retail insurance were the future of insurance, adding that the company would continue to develop products and services to ensure that it remains relevant in the contemporary space. He also stressed the firm’s determination to take advantage of growth initiatives available in the industry, while leveraging technology to expand its revenue base and ensure stronger bottom-line.
On his part, Ernesto Costa, Senior Vice President, Private Equity, at Blue Orchard, while speaking on the acquisition, said: “The history, team, and commitment of Royal Exchange Insurance to agriculture insurance make it a great addition to our portfolio. The company is uniquely positioned to capture the opportunity presented by 30million underinsured small scale farmers in Nigeria.”
He expressed his organisation’s delight in partnering and supporting Royal Exchange Insurance with capital and technical assistance on its international network in the agriculture insurance space, with the objective to increase the resilience of small scale farmers to climate change.
It would be recalled that Royal Exchange Plc had, in July disclosed the acquisition moves by IIF to the Nigerian Stock Exchange, which was finalised on the floor of the Exchange recently.
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