Guinea Insurance shareholders approve ₦15bn capital raise to drive recapitalisation, growth

Guinea Insurance Plc has recorded a major milestone in its ongoing transformation as shareholders approved the company’s capital raise plan at an Extraordinary General Meeting (EGM) held virtually in Lagos.

The meeting, which was conducted in line with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020, attracted strong participation from shareholders, regulators and other key stakeholders, reflecting growing confidence in the insurer’s strategic direction.

At the EGM, shareholders approved an increase in the company’s minimum issued share capital from ₦4.0 billion, representing 8 billion ordinary shares of 50 kobo each, to ₦19.0 billion, comprising 38 billion ordinary shares of 50 kobo each.

They also endorsed plans to raise up to ₦15.0 billion in new equity through a combination of a Rights Issue and Private Placement.

The approvals followed a No-Objection clearance from the National Insurance Commission (NAICOM), signalling regulatory support for the Board’s recapitalisation strategy and providing a clear pathway for strengthening the company’s capital base.

The recapitalisation programme is aimed not only at restoring Guinea Insurance’s statutory capital position, but also at enhancing its underwriting capacity and positioning the company for sustainable long-term growth.

The expanded capital base will create financial headroom for targeted investments in technology, data-driven underwriting, digital distribution and service automation, all intended to improve operational efficiency and customer experience.

Speaking at the meeting, the Chairman of the Board, Mr. Temitope Borishade, described the shareholders’ approval as a pivotal moment in the company’s turnaround journey.

He said: “The overwhelming support of our shareholders reflects their confidence in the Board and Management’s strategy to rebuild Guinea Insurance Plc into a stronger, more resilient, and more competitive insurer.

“This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders.”

The Board reaffirmed its commitment to transparency, strong corporate governance and the prudent deployment of the funds to be raised, noting that it would continue to work closely with regulators and professional advisers throughout the process.

Following the approval of all resolutions, Guinea Insurance Plc will proceed with the necessary regulatory filings and implementation steps required to execute the Rights Issue and Private Placement.