Lagos: Guinea Insurance Plc has announced that it has exceeded the N15 billion minimum capital requirement for non-life insurers as mandated by the National Insurance Commission (NAICOM). The company attributes this achievement to the successful completion of its recapitalisation exercise, aimed at bolstering its financial capacity and ensuring compliance with regulatory standards. This was revealed by the Managing Director, Mr. Ademola Abidogun, in a statement issued on Saturday.
According to News Agency of Nigeria, Guinea Insurance Plc raised approximately N12.6 billion through a hybrid capital raising programme that included both a rights issue and a private placement. Mr. Abidogun stated that both transactions adhered to regulatory requirements and were approved by the Securities and Exchange Commission (SEC). The funds generated from this exercise, combined with the company’s existing paid-up capital, have placed it above the required threshold of N15 billion. He noted that the capital position is still subject to final verification by relevant regulatory authorities.
Mr. Abidogun described this development as a significant milestone in Guinea Insurance’s recapitalisation programme and its broader growth strategy. He emphasized that the strengthened capital base will enhance 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.
The managing director expressed gratitude to shareholders, investors, regulators, and professional advisers for their support throughout the capital raising process, noting that the confidence shown by stakeholders was instrumental in the successful execution of the recapitalisation programme. Abidogun also disclosed that allotment results for the rights issue and private placement would be published on or before August 6, in compliance with regulatory requirements to ensure transparency.
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 stated.
The News Agency of Nigeria reports that NAICOM introduced a phased recapitalisation programme in 2025 to enhance insurers’ financial capacity and risk-bearing ability. This programme was implemented under the Nigerian Insurance Industry Reform Act 2025, signed into law by President Bola Tinubu. Under this framework, minimum capital requirements were increased across the industry to improve stability, competitiveness, and claims-paying capacity. The new thresholds were set at N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers, and N35 billion for reinsurers. NAICOM established Friday, July 31, as the deadline for insurance companies to meet the revised capital requirements.