Guinea Insurance Plc has begun moves to strengthen its financial base as the Board of Directors seeks shareholders’ approval to raise up to N15bn in new capital. The plan was revealed in a notice of an Extraordinary General Meeting filed with the Nigerian Exchange Limited on Wednesday, signalling the insurer’s efforts to meet new regulatory requirements and position the company for long-term growth.
The capital-raising initiative follows the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The new law significantly increases the minimum capital thresholds for insurance companies in the country. Under NIIRA 2025, non-life insurers must now maintain a minimum capital base of N15bn, up from the previous lower requirement. Life insurance companies must meet a minimum capital of N10bn, while reinsurance firms face the highest threshold at N35bn. The new rules are part of a wider plan by the Federal Government to improve sector resilience, protect policyholders and attract new investment into the insurance industry.
With the December EGM approaching, the Board of Guinea Insurance says the company must act quickly to align with the new capital regime and support its long-term operational goals. The first special business listed for discussion involves increasing the company’s minimum issued share capital from N4bn to N19bn. This will be achieved by expanding the authorised share volume from 8 billion ordinary shares of 50 kobo each to 38 billion ordinary shares of the same nominal value.
The Board is also seeking approval to raise up to N15bn through a combination of Rights Issue and Private Placement. According to the notice, the Board will determine the pricing, structure and timetable for the offer, subject to regulatory approvals. The capital raised will be used to comply with the statutory capital requirements, strengthen the firm’s financial position and support strategic growth plans. This includes expanding underwriting capacity, improving technology infrastructure and enhancing market competitiveness.
Part of the proposal includes the issuance of up to 6,327,779,310 ordinary shares in line with regulatory approvals. The company explained that the new shares, once issued, will rank pari passu with shares held by existing shareholders. This means all shares will have equal rights in terms of dividends, voting, and other shareholder privileges.
Furthermore, Guinea Insurance is seeking shareholders’ ratification for an additional Rights Issue involving up to 5,295,200,000 ordinary shares. Any shares not subscribed to by existing shareholders under this offer will be allotted to new investors through private placement. This option is designed to ensure the company raises the full amount required, even if current shareholders do not take up all their allocated rights.
Market analysts say the move is timely as the insurance sector adjusts to the new capital rules. Many insurers are expected to embark on similar fundraising exercises over the next few months to avoid regulatory sanctions and remain competitive.
At the close of trading on Wednesday, Guinea Insurance shares traded at N1.15 per unit, reflecting a 3.6 per cent rise from the previous day. A total of 2,098,639 units of the company’s shares were exchanged, showing increased market interest as investors await updates on the capital-raising process.
If approved, the N15bn capital injection is expected to boost Guinea Insurance’s solvency, expand its underwriting capacity and improve its ability to compete for bigger corporate and retail insurance contracts across Nigeria. The move also aligns with broader market reforms aimed at stabilising the insurance industry and encouraging deeper investor participation.
