Guinea Insurance Plc has opened a N5.8 billion Rights Issue to bolster its capital base ahead of the July 2026 recapitalisation deadline set by Nigeria’s insurance regulator.
The announcement was made in a company release dated March 19, 2026, following a signing ceremony held on March 16, 2026. The Rights Issue aligns with the company’s application to Nigerian Exchange Limited, which previously indicated that the underwrite would seek to raise N5.3 billion through the capital exercise.
The offer comprises 5,295,200,000 ordinary shares of 50 kobo each, priced at N1.10 per share, on the basis of two new shares for every three existing shares held as of January 21, 2026.
Board Chairman Temitope Borishade described the capital raise as “an important step in repositioning the Company to meet these realities while expanding our capacity to deliver innovative insurance solutions across key sectors of the economy.” He noted that the initiative signals renewed confidence to customers, brokers, and investors.
Managing Director/CEO Ademola Abidogun added that the additional capital will strengthen financial stability, regulatory compliance, and operational efficiency. He highlighted that the move would support technology investments and expansion into underpenetrated retail and SME insurance markets.
Industry analyst Sam Chidoka described the offer as an attractive opportunity for investors to gain exposure to a company undergoing strategic transformation.
The initiative comes amid a major regulatory overhaul under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The reforms introduce stricter capital requirements and a risk-based capital framework: non-life insurers must maintain a minimum capital base of N15 billion, life insurers N10 billion, and reinsurance firms N35 billion. The National Insurance Commission (NAICOM) can cancel licences of companies failing to meet the July 31, 2026, deadline.
Guinea Insurance’s stock closed at N1.33 per share on March 18, 2026, giving the company a market valuation of approximately N10.6 billion. The Rights Issue represents a significant step toward meeting the regulatory minimum capital requirement and enhancing the company’s market position.
