Regency Alliance Insurance Plc has formally entered a new growth phase with the signing of a Rights Issue Agreement to raise fresh capital through the issuance of 3.2 billion ordinary shares, a move designed to strengthen its underwriting capacity and accelerate digital transformation across its operations.
The signing ceremony, held at the company’s headquarters in Lagos, brought together board members, issuing houses, legal advisers, and stockbrokers, marking a key governance milestone in the execution of the capital raise. The transaction comes as Nigeria’s insurance industry continues to undergo broad recapitalisation reforms aimed at reinforcing sector stability and expanding risk absorption capacity.
Under the structure of the offer, the company will issue 3,201,000,000 ordinary shares of 50 kobo each at 95 kobo per share, with shareholders entitled to subscribe on the basis of one new share for every five held.
Executive management said the proceeds will be channelled into technology upgrades, product innovation, and improved customer service delivery, with a strong emphasis on expanding access to underserved market segments.
Speaking at the ceremony, the Acting Chairman of Regency Alliance Insurance Plc, Chief Wale Taiwo, SAN, described the rights issue as a long-term vote of confidence in the company’s strategy and stakeholder relationships.
“Today’s signing is more than a formality. It is a statement of belief – belief in our people, our strategy, and the trust our customers and shareholders have placed in us over the years. This capital raise will give us the firepower to meet evolving risks, expand our reach, and deepen the promise we make to every policyholder: that Regency Alliance will be there when it matters most,” he said.
He also urged shareholders to fully participate in the offer to avoid dilution and position themselves for future value creation.
“We are particularly encouraged by the unwavering support of our shareholders who have stood by the company through its growth journey. We urge all eligible shareholders to take advantage of this rights issue and fully exercise their rights,” he added.
Reinforcing the operational strategy behind the capital raise, the Managing Director, Bode Oseni, said the funds would support the company’s digital transformation agenda and broaden its product reach.
“Regency Alliance has always prided itself on being agile, customer-focused, and financially sound. The proceeds from this rights issue will accelerate our digital transformation, enhance claims efficiency, and enable us to introduce innovative products tailored to SMEs, Gen Z, and other underserved segments across Nigeria and beyond. We are not merely raising capital; we are raising our ambition,” he said.
Oseni added that investor participation is expected to strengthen the insurer’s competitive positioning as it targets deeper penetration of Nigeria’s retail insurance market.
The rights issue has already secured regulatory approvals from the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX), with the acceptance period scheduled to open on June 22, 2026, and close on July 3, 2026. Shareholders will receive formal offer documents ahead of the subscription window.
The capital raise forms part of a wider recapitalisation wave sweeping through Nigeria’s insurance sector, driven by regulatory reforms aimed at improving underwriting capacity, enhancing local risk retention, and reducing dependence on foreign reinsurers. Industry operators are collectively seeking to raise over ₦130 billion to meet new capital expectations and reposition for growth.
For Regency Alliance, the move is also aligned with a relatively stable financial base. By the end of its 2025 financial year, the company expanded its asset base beyond ₦22 billion, supported by strategic restructuring and a prior bonus issue. Management says the new injection of approximately ₦3.04 billion will be directed more toward expansion and innovation rather than compliance-driven restructuring.
Following the retirement of long-serving Managing Director Biyi Otegbeye, the new leadership under Oseni has prioritised digitisation, SME-focused products, and broader market inclusion as the insurer positions itself for its next phase of growth.