By Taiye Olayemi
Guinea Insurance Plc says it has exceeded the N15 billion minimum capital requirement for non-life insurers prescribed by the National Insurance Commission (NAICOM).
The company attributed the achievement to the successful completion of its recapitalisation exercise aimed at strengthening its financial capacity and regulatory compliance.
The Managing Director, Mr Ademola Abidogun, disclosed this in a statement issued on Saturday in Lagos.
Abidogun said Guinea Insurance raised about N12.6 billion through a hybrid capital raising programme comprising a rights issue and a private placement.
According to him, both transactions were conducted in line with regulatory requirements and received the necessary approvals from the Securities and Exchange Commission (SEC).
He explained that the proceeds from the exercise, combined with the company’s existing paid-up capital, placed it above the required threshold.
“The proceeds, together with our existing paid-up capital, have positioned the company above the N15 billion minimum capital requirement,” he said.
Abidogun noted that the capital position remained subject to final regulatory capital verification by the relevant authorities.
He described the development as a significant milestone in Guinea Insurance’s recapitalisation programme and broader growth strategy.
According to him, the strengthened capital base will improve the company’s financial resilience and expand its capacity to underwrite larger risks.
“It will strengthen our financial position, enhance underwriting capacity and create sustainable value for shareholders and other stakeholders,” he said.
Abidogun expressed appreciation to shareholders, investors, regulators and professional advisers for their support throughout the capital raising process.
He said the confidence shown by stakeholders contributed significantly to the successful execution of the recapitalisation programme.
The managing director disclosed that allotment results for the rights issue and private placement would be published on or before Aug. 6.
He said the publication would comply with regulatory requirements and ensure transparency in the capital raising process.
Abidogun reaffirmed the company’s commitment to completing the recapitalisation exercise and maintaining regular communication with stakeholders.
“We will continue to keep shareholders, investors and stakeholders informed of further developments, including final regulatory verification outcomes,” he said.
The News Agency of Nigeria (NAN) reports that NAICOM introduced a phased recapitalisation programme in 2025 to strengthen insurers’ financial capacity and risk-bearing ability.
The programme was implemented under the Nigerian Insurance Industry Reform Act 2025, signed into law by President Bola Tinubu.
Under the framework, minimum capital requirements were raised across the industry to improve stability, competitiveness and claims-paying capacity.
The new thresholds were fixed at N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers and N35 billion for reinsurers.
NAICOM set Friday, July 31, as the deadline for insurance companies to meet the revised capital requirements.(NAN)
Edited by Kamal Tayo Oropo