Royal Exchange Plc has confirmed that Nexamont Company Limited has acquired 1.77 billion ordinary shares, representing a 21.4% equity stake in the company.
This was disclosed in a notification filed with the Nigerian Exchange Limited (NGX), as required under Rule 17.13(a), Part II of the NGX Rulebook.
The transaction was facilitated by Nova Finance Securities Limited, acting as financial advisers to Nexamont.
According to the statement
“Royal Exchange Plc received a letter from Nova Finance Securities Ltd., notifying the company that Nexamont has acquired 1,770,499,535 units of ordinary shares through the secondary market.”
The acquisition, executed via the secondary market, makes Nexamont a significant beneficial owner in one of Nigeria’s long-standing financial services institutions.
Royal Exchange Assurance share price closed the week at N2.04 per share and has risen a whopping 234% in the last one year.
At the current share price, the 1.77 billion shares are worth N3.6 billion. The company did not state the acquisition price.
Earlier this year, in May 2025, Nairametrics reported that Royal Exchange had achieved significant trading volume — N903.5 million — even as the All‑Share Index (ASI) saw a 0.40% decline.
That spike in trading activity may have been a precursor to growing investor interest in the company, possibly foreshadowing the share acquisition by Nexamont.
What we know about Nexamont
Nexamont Company Limited was incorporated in Nigeria on June 5, 2024, with registration number RC-7551053. The company is relatively new and is associated with Nzerem Yvonne Chinecherem, listed as the person with significant control.
The strategic intent behind the acquisition has not yet been publicly disclosed, and Nexamont is yet to release an official statement detailing its plans regarding Royal Exchange.
NIIRA 2025: Regulatory Landscape and Insurance Sector Shake‑Ups
The acquisition comes at a time when Nigeria’s insurance industry is undergoing sweeping reforms under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law in August.
According to NIIRA 2025, the new revised capital requirements provide that Life insurance firms must raise their minimum capital from N2 billion to N10 billion; Non‑life insurers from N3 billion to N15 billion; and Reinsurance companies from N10 billion to N35 billion.
A 12‑month transition period for existing insurers to meet these new thresholds.
Analysts are projecting mergers & acquisitions (M&A), strategic equity injections, asset sales and partnerships to help under‑capitalised insurers comply.
The Nexamont-Royal Exchange deal is the latest in a growing list of major plays in Nigeria’s evolving insurance market:
In May 2025, South Africa’s Sanlam and Germany’s Allianz merged their Nigerian operations to form SanlamAllianz Nigeria—one of the most significant cross-border consolidations in Nigeria’s insurance history. (Read Article)
By July, NAICOM issued operational licences to SanlamAllianz Life and SanlamAllianz General Insurance, underscoring regulatory approval of consolidation as a strategic response to NIIRA.
What you should know
Royal Exchange Plc reported a strong performance for the half-year ended June 2025, with profit before tax rising 94% to N1.51 billion and earnings up 72% to N1.71 billion.
- Shareholders’ funds grew 32% to N8.24 billion, while total assets increased to N11.14 billion.
- The company maintained a healthy balance sheet with reduced liabilities and no new borrowings.
- Earnings per share rose to 37 kobo, and its stock price surged 72% year-on-year to N1.10.
