The board of directors of Royal Exchange Plc, has assured its shareholders that there is no cause for alarm over the recapitalization plan of the company. The chairman Kenny Odogwu disclosed this to shareholders on Wednesday October 9, 2019, at its 50th Annual General Meeting (AGM) in Lagos.
Ahead of the June 2020, deadline for insurance companies to recapitalized, Odogwu explained that the company is now repositioned to leverage on technology to grow their business, adding that the group is presently streamlining major components of its businesses, service delivery, processes and operations to deliver superior returns in the medium term to its shareholders through a digital transformation process.
According to him “This we believe will reposition our great company as not only a major industry player but as a potential game changer. To sum it up, your board is confident about the future of our company irrespective of the current challenges besetting the company in the short term,”
It will be recalled that in July this year Royal Exchange Plc announced that InsuResilience Investment Fund (IIF) set up on behalf of the German government by KfW and managed by Swiss based Impact Investment Manager BlueOrchard Finance Ltd, acquired a 39.25% stake in Royal Exchange General Insurance Company Limited (REGIC).
REGIC is one of the largest non-life insurance companies in Nigeria. Through its activities, the IIF is expected to reach out to more than 1 million Nigerian farmers by 2025. The investment has been approved by the regulator of REGIC, the National Insurance Commission.
Royal Exchange commenced operations in Nigeria in 1918, represented by Barclays Bank DCO and in 1921 converted to a full branch of its then parent company, Royal Exchange Assurance, London. The company was in December 1969, reconstituted and incorporated as a Private Limited Liability Company.
The company went public on 18 July, 1989 and was duly listed on the Nigerian Stock Exchange (NSE) on December 3 1990. The share price is currently trading on the floor of the stock exchange at ₦0.20 kobo.
Photo Caption: Mr. Kenneth Ezenwani Odogwu, Chairman Royal Exchange Plc