Royal Exchange Plc has clarified that the revocation of Royal Exchange Prudential Life Plc’s operating licence by the National Insurance Commission (NAICOM) has no impact on its financial position, operations or regulatory status.
The company made the clarification in a statement filed with the Nigerian Exchange Limited (NGX) on Monday, following reports that NAICOM had withdrawn REPRU’s licence over its failure to meet the required minimum capital threshold.
Royal Exchange explained that while REPRU continues to operate under the Royal Exchange name, it has not been part of the company’s corporate structure since 2022.
According to the company, it sold its interest in Royal Exchange Prudential Life in August 2022, after which the life insurer became an independent entity.
Royal Exchange therefore stressed that REPRU is neither its subsidiary nor affiliate and that both companies now operate separately.
The company said the distinction was important in view of the recent regulatory action, noting that the licence revocation applies specifically to REPRU and should not be regarded as a regulatory action against Royal Exchange Plc.
“Accordingly, REPRU is not a subsidiary or affiliate of Royal Exchange and its current financial position, operations, regulatory status and obligations are separate and distinct from those of Royal Exchange,” the company stated.
Royal Exchange also assured its shareholders and investors that it remains focused on maintaining strong corporate governance, regulatory compliance and financial responsibility.
The company added that it would continue to work with regulators and other relevant stakeholders while pursuing its objective of creating sustainable value for shareholders.
The clarification comes as NAICOM continues to enforce capital and other regulatory requirements across Nigeria’s insurance industry, with operators facing increased scrutiny over their financial capacity and compliance.
