Guinea Insurance Moves to Raise ₦15 Billion to Meet New Capital Rules — What Investors Should Know
Guinea Insurance Plc has announced a major step toward strengthening its financial base as it seeks shareholders’ approval to raise up to ₦15 billion in fresh capital. This move is crucial as the company works to meet the newly mandated capital requirements in the Nigerian insurance industry.
Below is a full breakdown of the development
Why Is Guinea Insurance Raising Capital?
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 recently increased the Minimum Capital Requirements for all players in the insurance sector:
• ️ Non-life insurers: Minimum capital now ₦15bn
• ❤️ Life insurers: Minimum capital now ₦10bn
• Reinsurance companies: Minimum capital raised to ₦35bn
Guinea Insurance currently falls short of this new benchmark, hence the move to boost its capital base.
What the Company Is Proposing
The Board has called an Extraordinary General Meeting (EGM) to get shareholder approval for the following:
1️⃣ Increase in Share Capital
• From ₦4 billion (8 billion ordinary shares at 50 kobo each)
• To ₦19 billion (38 billion ordinary shares at 50 kobo each)
This gives the company more “room” to issue additional shares.
2️⃣ Raising Up to ₦15 Billion in New Equity
The Board is seeking approval to raise fresh funds via:
• Rights Issue (existing shareholders get the first opportunity)
• Private Placement (new investors can also come in)
The proposed amount: ₦15 billion
This will support:
• Compliance with NIIRA 2025
• Strengthening the balance sheet
• Funding future growth and expansion
3️⃣ Issuance of New Shares
The company plans to issue:
• 6.33 billion new shares (ordinary shares) — subject to regulatory approvals
• Additional 5.29 billion shares via Rights Issue
• Any unsubscribed shares can be sold to other investors through private placement
All new shares will rank pari passu (equal rights) with existing shares.
Market Reaction
At the close of trading on Wednesday:
• Guinea Insurance traded at ₦1.15 per share
• This represents a 3.6% increase from the previous day
• About 2.1 million shares were traded
Investors may be reacting positively to the recapitalisation move as it strengthens the company’s long-term stability.
What This Means for Investors
A stronger capital base improves solvency and operational capacity
Existing shareholders may have a chance to increase their stake through the Rights Issue
Increased share float could affect share price behaviour in the short term
The company is taking proactive steps to remain compliant and competitive
Guinea Insurance Plc has announced a major step toward strengthening its financial base as it seeks shareholders’ approval to raise up to ₦15 billion in fresh capital. This move is crucial as the company works to meet the newly mandated capital requirements in the Nigerian insurance industry.
Below is a full breakdown of the development
Why Is Guinea Insurance Raising Capital?
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 recently increased the Minimum Capital Requirements for all players in the insurance sector:
• ️ Non-life insurers: Minimum capital now ₦15bn
• ❤️ Life insurers: Minimum capital now ₦10bn
• Reinsurance companies: Minimum capital raised to ₦35bn
Guinea Insurance currently falls short of this new benchmark, hence the move to boost its capital base.
What the Company Is Proposing
The Board has called an Extraordinary General Meeting (EGM) to get shareholder approval for the following:
1️⃣ Increase in Share Capital
• From ₦4 billion (8 billion ordinary shares at 50 kobo each)
• To ₦19 billion (38 billion ordinary shares at 50 kobo each)
This gives the company more “room” to issue additional shares.
2️⃣ Raising Up to ₦15 Billion in New Equity
The Board is seeking approval to raise fresh funds via:
• Rights Issue (existing shareholders get the first opportunity)
• Private Placement (new investors can also come in)
The proposed amount: ₦15 billion
This will support:
• Compliance with NIIRA 2025
• Strengthening the balance sheet
• Funding future growth and expansion
3️⃣ Issuance of New Shares
The company plans to issue:
• 6.33 billion new shares (ordinary shares) — subject to regulatory approvals
• Additional 5.29 billion shares via Rights Issue
• Any unsubscribed shares can be sold to other investors through private placement
All new shares will rank pari passu (equal rights) with existing shares.
Market Reaction
At the close of trading on Wednesday:
• Guinea Insurance traded at ₦1.15 per share
• This represents a 3.6% increase from the previous day
• About 2.1 million shares were traded
Investors may be reacting positively to the recapitalisation move as it strengthens the company’s long-term stability.
What This Means for Investors
A stronger capital base improves solvency and operational capacity
Existing shareholders may have a chance to increase their stake through the Rights Issue
Increased share float could affect share price behaviour in the short term
The company is taking proactive steps to remain compliant and competitive