Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue, as the company moves to strengthen its capital base and comply with new regulatory minimum capital requirements in Nigeria’s insurance industry.
The proposed capital raise 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 the basis of two new shares for every three existing shares held. Shareholders on the company’s register at the close of business on January 21, 2026, will be eligible to participate.
The application was submitted to the NGX through the company’s stockbrokers, Forte Financial Limited and Mega Equities Limited, and is currently awaiting regulatory approval and clearance for listing. Once approved, the company’s registrars will dispatch the rights circular to shareholders and communicate the full offer timetable.
Details of the proposed transaction were disclosed in a market bulletin issued by the NGX with reference number NGXREG/IRD/MB8/26/01/21, which was sighted on Thursday. According to the notice, the rights issue forms part of Guinea Insurance’s broader strategy to shore up its capital position in line with evolving regulatory expectations.
Regulatory backdrop: NIIRA 2025
The rights issue comes at a time of far-reaching reforms in Nigeria’s insurance sector, following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on July 31, 2025. The new legislation introduces stricter supervisory measures, higher minimum capital requirements, and the adoption of a risk-based capital (RBC) framework aimed at ensuring insurers hold capital that reflects the risks they underwrite.
Under the revised regime, life insurance companies are required to maintain a minimum capital base of N10 billion, while non-life or general insurance firms must hold at least N15 billion. Reinsurance companies face an even higher threshold of N35 billion or more.
The Act also grants the National Insurance Commission (NAICOM) expanded powers to mandate additional capital based on individual risk profiles and to cancel operating licences for insurers that fail to meet recapitalisation deadlines. NAICOM has since issued detailed guidelines covering recapitalisation plans, quarterly progress reporting, capital verification processes, and documentation standards for admissible assets.
All insurers and reinsurers are expected to comply with the new minimum capital requirements on or before July 30, 2026, with severe penalties prescribed for non-compliance.
Share price performance
Guinea Insurance’s shares closed at N1.30 per share on Thursday, January 22, 2026. The stock opened the year at N1.33 and has since declined by 2.26%, placing it 141st on the NGX in terms of year-to-date performance.
The company’s share price has experienced notable volatility over the past year. After trading as a penny stock in early January 2025, it climbed to a high of N1.77 on August 22, 2025, before falling sharply to N0.96 on December 11, 2025. The stock later recovered to close at N1.33 per share on December 31, 2025.
With 7.94 billion shares outstanding, Guinea Insurance currently has a market capitalisation of approximately N10.3 billion. This makes it the 110th most valuable listed company on the NGX, accounting for about 0.0098% of the total equity market value.
If approved and fully subscribed, the proposed rights issue would significantly bolster the company’s capital position as it navigates the tighter regulatory landscape reshaping Nigeria’s insurance industry.