Guinea Insurance Plc is seeking shareholder approval to raise up to ₦15bn in additional capital as the company moves to meet the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The proposed capital raise was disclosed in a notice of an Extraordinary General Meeting (EGM) filed with the Nigerian Exchange Limited on Wednesday.
The PUNCH reports that the NIIRA 2025 has significantly increased capital thresholds across the insurance sector, mandating a ₦15bn minimum for non-life insurers, ₦10bn for life insurance firms and ₦35bn for reinsurance companies — the steepest requirement in the industry’s history.
To comply with the new rules, Guinea Insurance’s board is asking shareholders to approve the following at its upcoming EGM:
- Increase in authorised share capital from ₦4bn (8 billion ordinary shares of 50 kobo each) to ₦19bn (38 billion ordinary shares of 50 kobo each).
- Authority to raise up to ₦15bn through a combination of Rights Issue and Private Placement on terms to be determined by the board.
- Permission to issue up to 6.33 billion ordinary shares, subject to regulatory approval, as part of the capital-raising process.
- Additional authorisation to issue up to 5.29 billion ordinary shares via Rights Issue, with any unsubscribed shares allotted to new investors through private placement.
The new shares, once issued, will rank pari passu with the company’s existing ordinary shares.
The capital injection, according to the board, is necessary to strengthen the firm’s financial base, enhance regulatory compliance, and support long-term growth plans.
Meanwhile, Guinea Insurance’s share price closed at ₦1.15 on Wednesday, marking a 3.6% gain from the previous day’s close. A total of 2,098,639 units of the company’s shares were traded during the session.
