Guinea Insurance applies for N5.3B rights issue to strengthen capital and meet new Nigerian Insurance Industry Reform Act 2025 requirements

Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue, as the Lagos-based insurer moves to comply with new regulatory capital requirements and strengthen its financial position, the company confirmed.

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The proposed rights issue involves the issuance of 5,295,200,000 ordinary shares of 50 kobo each at an offer price of N1.10 per share.

The offer is structured on a basis of two new shares for every three existing shares held, with shareholders on the company’s register at the close of business on 21 January 2026 eligible to participate.

The application was submitted via Guinea Insurance’s stockbrokers, Forte Financial Limited and Mega Equities Limited, and is currently awaiting NGX regulatory approval and clearance for listing.

Once approved, shareholders will receive the rights circular and the full offer timetable.

The capital raise aligns with the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which increases minimum capital requirements across life, non-life, and reinsurance sectors.

Non-life insurers, including Guinea Insurance, are required to hold at least N15 billion in capital, with compliance deadlines set for 30 July 2026.

NAICOM has emphasised strict reporting, verification, and potential penalties for non-compliance.

Guinea Insurance shares closed at N1.30 on Thursday, having opened the year at N1.33.

The stock has shown volatility over the past 12 months, peaking at N1.77 in August 2025 before falling to N0.96 in December 2025.

The company currently has a market capitalisation of approximately N10.3 billion.

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If fully subscribed, the rights issue would significantly reinforce Guinea Insurance’s capital position, helping the company meet NIIRA 2025 requirements and support sustainable growth in Nigeria’s evolving insurance sector.