Guinea Insurance Plc has deposited N1.5 billion with the Central Bank of Nigeria (CBN) in compliance with statutory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The disclosure was contained in a statement signed by the Company Secretary, Chinenye Nwankwo, and sent to shareholders on Monday, June 8, 2026.
According to the company, the deposit represents 10 per cent of the minimum capital requirement for non-life insurance firms and forms part of its ongoing recapitalisation programme ahead of the regulatory deadline.
Guinea Insurance stated that the payment brings it into full compliance with the statutory deposit requirement under NIIRA 2025, underscoring its commitment to meeting regulatory obligations within stipulated timelines.
“In compliance with the provisions of the Act, the Company has remitted the required statutory deposit to the Central Bank of Nigeria (CBN), bringing its total statutory deposit balance to N1.5 billion, representing 10% of the minimum capital requirement applicable to non-life insurance companies,” the statement read.
The company added that both its board and management remain appreciative of the continued support of shareholders, policyholders, brokers, customers, and business partners as it pursues its strategic growth objectives.
The development comes roughly two months after Guinea Insurance Plc launched a N5.8 billion Rights Issue aimed at strengthening its capital base ahead of the July 2026 recapitalisation deadline.
The capital raise is part of broader efforts to align with regulatory expectations and also follows its application to the Nigerian Exchange Limited to raise approximately N5.30 billion through a rights issue.
The offer comprises 5,295,200,000 ordinary shares of 50 kobo each at N1.10 per share, structured on a basis of two new shares for every three existing shares held as of January 21, 2026.
Company management described the rights issue as a strategic move beyond regulatory compliance, aimed at enhancing operational strength and improving market positioning.
Funds raised from the exercise are expected to boost underwriting capacity across key sectors of the Nigerian economy, while also supporting investments in technology, digital transformation, and operational efficiency.
However, analysis of the offer suggests mixed investor sentiment. The pricing structure reflects a modest 2.65 per cent discount to prevailing market value, offering limited short-term arbitrage opportunities for shareholders.
The post-offer valuation of N1.12 per share is slightly below current market levels, indicating potential downside risk for investors who choose not to participate in the offer.
Financial performance data shows that Guinea Insurance experienced volatility between 2021 and 2025.
The company recorded losses of N36 million in 2021 and N83 million in 2022, before recovering with a profit of N478 million in 2023 and peaking at N937 million in 2024.
Profit then declined to N353 million in 2025, bringing total cumulative profit over five years to N1.295 billion—significantly lower than the N5.82 billion targeted in its rights issue.
The recapitalisation effort reflects broader pressures within Nigeria’s insurance sector as firms adjust to new capital requirements and seek stronger financial positions in a changing regulatory environment.
