Royal Exchange Plc has announced plans to list N3 billion bond on the floor of the Nigerian Stock Exchange (NSE) in October 2016.
The capital raise if successful would position the 95-years old firm to play big and underwrite big ticket risks in the nation’s insurance industry.
Auwalu Muktari, Group Managing Director of the Company made the disclosure during an official visit to the management of the firm to the NSE where he rang the closing gong recently.
Muktari, also said that the plan is in line with ongoing reforms in the insurance industry particularly the Risk Based Supervion (RBS), requiring increased capital structure for bigger ticket risks, adding that Royal Exchange was in line with developing to being proactive in readiness for higher responsibility.
“By October 2016, we want to play big in the Nigerian insurance industry and with need for more capital in the industry, we are restrategising to ensure we have the required recapitalization to play bigger and take the opportunity in the insurance industry.
“Besides that, the company is setting up a pension fund administration company, a PFA so that we tap into the opportunity of the annuity business.”
The Daily Times recalled that Royal Exchange in 2015, strategized to write annuity business under its life company. The company had good strategy of marketing for the annuity business and made an income of about N1 billion in 2015.
Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers. Following the recapitalization exercise in 2007, the company was reorganized into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely: Royal Exchange General Insurance Company Limited (Non-Life Insurance Services); Royal Exchange Prudential Life Plc (Life Assurance Services); Royal Exchange Finance and Investments Limited (Financial Advisory Services); Royal Exchange Healthcare Limited (HMO and Health Insurance) and Royal Exchange Microfinance Bank Limited (Banking Services).
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