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By Henry Uche
Guinea Insurance Plc has taken a decisive step to strengthen its financial foundation, as shareholders approved a comprehensive capital raise at a recent Extraordinary General Meeting held virtually in Lagos. The meeting, conducted in full compliance with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020, saw robust participation from shareholders, regulators, and key stakeholders, signalling broad confidence in the company’s strategic direction.
Confirming the development, Mr. Hanson Ufot, Head of Brand & Corporate Communications, stated that following the resolutions passed at the meeting, Guinea Insurance is now advancing a full recapitalisation programme designed to reinforce its balance sheet and position the company for sustainable growth.
“Shareholders approved increasing the Company’s minimum issued share capital from N4.0 billion (8 billion ordinary shares of 50 kobo each) to N19.0 billion (38 billion ordinary shares of 50 kobo each), alongside a plan to raise up to N15.0 billion in additional equity through a combination of Rights Issue and Private Placement,” Ufot explained. “This follows receipt of a No-Objection approval from the National Insurance Commission (NAICOM), reflecting regulatory confidence in the Board’s strategy and providing a clear pathway to reinforce our capital base.”
Ufot noted that the expanded capital structure is intended to fund targeted investments in technology, data-driven underwriting, digital distribution, and service automation. “These investments will support operational efficiency, faster turnaround times, and more personalised customer engagement, reinforcing our ability to deliver consistent and rewarding experiences across all stakeholder touchpoints,” he said.
At the meeting, Chairman Mr. Temitope Borishade described shareholders’ approval as a pivotal milestone in the company’s transformation journey. “The capital raise will strengthen the balance sheet, restore statutory capital position, enhance underwriting capacity, and support long-term strategic growth initiatives,” Borishade said.
He added, “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 reiterated its commitment to transparency, strong governance, and prudent deployment of the new capital, working closely with regulators and professional advisers. The initiative underscores Guinea Insurance’s dedication to becoming a resilient, forward-looking insurer capable of meeting policyholder, investor, and partner expectations, while supporting broader economic activity and delivering sustainable returns.
Following the successful approval of all resolutions, the company confirmed it would proceed with the necessary regulatory filings to execute the Rights Issue and Private Placement, marking the next phase in its strategic transformation.
