Guinea Insurance Plc has applied to the Nigerian Exchange (NGX) for approval to raise N5.30 billion through a rights issue, as part of efforts to strengthen its capital base and comply with new regulatory capital requirements in Nigeria’s insurance industry.
The proposed rights issue 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, with January 21, 2026, set as the qualification date for eligible shareholders.
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 listing. Once approval is secured, the company’s registrars will dispatch the rights circular to shareholders and release the detailed offer timetable.
Details from the market filing
According to a market bulletin referenced NGXREG/IRD/MB8/26/01/21, the rights issue is aimed at bolstering Guinea Insurance’s capital position in line with ongoing reforms in the insurance sector. Only shareholders whose names appear on the company’s register at the close of business on January 21, 2026, will be eligible to participate in the offer.
Regulatory backdrop
The capital raise comes amid sweeping reforms introduced by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on July 31, 2025. The legislation overhauls insurance supervision and introduces higher minimum capital requirements alongside a risk-based capital (RBC) framework, designed to ensure insurers maintain capital levels that reflect the risks they underwrite.
Under the new regime:
-
Life insurance companies must maintain a minimum capital base of N10 billion.
-
Non-life (general) insurers are required to hold at least N15 billion.
-
Reinsurance companies must have a minimum capital of N35 billion.
The Act also grants the National Insurance Commission (NAICOM) expanded powers to mandate higher capital thresholds based on insurers’ risk profiles and to revoke licences of firms that fail to recapitalise within the stipulated timeframe.
NAICOM has since issued detailed recapitalisation guidelines covering submission of recapitalisation plans, quarterly progress reporting, capital verification procedures, and documentation requirements for admissible assets. All insurers and reinsurers are required to meet the new minimum capital requirements on or before July 30, 2026, with strict sanctions for non-compliance.
Stock performance on NGX
Guinea Insurance’s shares closed trading on Thursday, January 22, 2026, at N1.30 per share. The stock opened the year at N1.33 and has since declined by 2.26% year-to-date, placing it 141st on the NGX in terms of performance so far in 2026.
The stock has experienced significant volatility over the past year. It rose to N1.77 per share on August 22, 2025, before falling to N0.96 on December 11, 2025, and later recovering to N1.33 by December 31, 2025.
With 7.94 billion shares outstanding and a market capitalisation of approximately N10.3 billion, Guinea Insurance is currently ranked as the 110th most valuable stock on the NGX, accounting for about 0.0098% of the total equity market value.
Overall, the proposed rights issue represents a key step by Guinea Insurance to shore up capital, meet regulatory demands, and position itself more firmly within Nigeria’s evolving insurance landscape.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
