Royal Exchange Completes payment to NBC,Pays NGN 563 Million As Consequential Loss

Royal Exchange General Insurance Company Limited (REGIC), Nigeria’s pioneer and leading insurance company has completed a N3.8billion insurance claim payout to Nigeria Bottling Company (NBC) in respect of the fire disaster which engulfed the Benin factory of NBC in December 2008.

Royal Exchange General, which had in December, 2009 paid the sum of N3.24 Billion for the fire and material damages incurred by NBC, has now completed the final claims payment with N563 Million for the consequential loss due to the inferno, thereby bringing the total payment for the fire disaster to N3.8 Billion.

A statement by the Corporate Affairs Department of Royal Exchange General Insurance (REGIC) quotes Mr. Olutayo Borokini, Ag. Managing Director as saying that the N3.8 Billion payment represents the biggest single insurance claims settlement in the history of insurance in Nigeria.

By this feat, he said “Royal Exchange General has once again demonstrated its strength and ability to honour its financial obligations and protect the interest of its various corporate or individual clients in either the private or public sectors of the Nigerian economy.

“Ours is a commitment to genuine partnership based on trust and integrity. These are the core values instilled by the founders of Royal Exchange which have continued to drive the operations and strategic direction of our company”, Mr. Borokini stated.

The statement from the Corporate Affairs Department of Royal Exchange, recalled that Royal Exchange General Insurance Company led the consortium of co-insurers with 47.5 per cent on the schedule of insurance cover for the NBC plant in Benin. Also, a number of professionals such as loss adjusters, valuators, quantity surveyors and engineers from within and outside the country were engaged in the assessment and adjustment of the loss, which was finally settled at N6.824billion.

Mr.Borokini thanked the Management of Nigeria Bottling Company (NBC) for their understanding during the period of assessment and loss adjustment, saying “trust in business inevitably results in mutual benefits to all parties”.

On the prospects of a rebound of the Nigerian financial sector, Mr. Olutayo Borokini expressed optimism that with the structures put in place by the nation’s regulatory authorities, especially with regards to risk management and corporate governance, the Nigerian economy will continue on a steady path of growth and consolidation.

Royal Exchange General Insurance Company Limited is a wholly owned subsidiary of Royal Exchange Plc, a group holding and asset management company.

Date:23rd April 2010