️ Guinea Insurance Gets Shareholders’ Green Light for Major ₦15bn Capital Raise

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Olori Uwem

Well-Known Member
Mar 18, 2024
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️ Guinea Insurance Gets Shareholders’ Green Light for Major ₦15bn Capital Raise

Guinea Insurance Plc has secured shareholders’ approval to proceed with a significant capital raising and recapitalisation plan, marking a key milestone in the company’s ongoing transformation and growth strategy.

️ Approval Secured at Extraordinary General Meeting
• The approval was granted at an Extraordinary General Meeting (EGM) held virtually in Lagos
• The meeting complied fully with the Business Facilitation Act 2022 and CAMA 2020
• Shareholders, regulators, and key stakeholders participated actively, signalling strong confidence in management’s direction

What Was Approved?

Shareholders approved a major expansion of the company’s capital base, including:

Increase in Issued Share Capital
• From ₦4.0 billion
(8 billion ordinary shares of 50 kobo each)
• To ₦19.0 billion
(38 billion ordinary shares of 50 kobo each)

Fresh Capital Raise
• Up to ₦15.0 billion to be raised via:
• Rights Issue (existing shareholders get first offer)
• Private Placement (targeted investors)

️ Regulatory Backing
• The recapitalisation plan already received a “No Objection” approval from NAICOM
• This confirms regulatory confidence in the board’s strategy and clears the path for execution

Why the Capital Raise Matters

According to the company, the new funds will be used to:
• Strengthen the balance sheet
• Restore and reinforce statutory capital adequacy
• Enhance underwriting capacity
• Improve operational efficiency
• Support technology upgrades and customer engagement
• Position the company for long-term, sustainable growth

️ Management’s View

The Chairman, Mr. Temitope Borishade, described the approval as a pivotal milestone in Guinea Insurance’s turnaround journey, noting that the recapitalisation will:
• Improve turnaround times
• Enable more personalised customer service
• Deliver better value across all stakeholder touchpoints

Investor Takeaway

This move aligns with the broader insurance sector recapitalisation trend in Nigeria and signals:
• A stronger capital position going forward
• Better ability to compete and write larger risks
• A renewed focus on growth, stability, and compliance

For investors, this is one to watch closely, especially as execution details of the rights issue and private placement emerge.