Yemisi Izuora
Shareholders have backed Guinea Insurance Plc plan on recapitalization plan.
The Company reached this significant milestone in its transformation journey, as shareholders approved the Board’s capital raise plan at a recent Extraordinary General Meeting (EGM) 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 strong participation from shareholders, regulators, and key stakeholders, reflecting broad confidence in the company’s strategic direction
Following resolutions passed at its Extraordinary General Meeting (EGM), Guinea Insurance Plc is advancing a comprehensive recapitalisation programme designed to strengthen its financial foundation and position the Company for sustainable growth. Shareholders approved the increase of the Company’s minimum issued share capital from ₦4.0 billion (8 billion ordinary shares of 50 kobo each) to ₦19.0 billion (38 billion ordinary shares of 50 kobo each), alongside a plan to raise up to ₦15.0 billion in additional equity through a combination of Rights Issue and Private Placement. This follows the 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 the Company’s capital base.
Beyond balance sheet strength, the expanded capital structure is deliberately designed to provide the financial headroom required to stimulate 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 the Company’s ability to deliver consistent and rewarding experiences across all stakeholder touchpoints.
Speaking at the Extraordinary General Meeting, the Chairman of the Board, Mr. Temitope Borishade, described the shareholders’ approval of the recapitalisation plan as a pivotal milestone in Guinea Insurance Plc’s transformation journey. He emphasised that the capital raise would strengthen the Company’s balance sheet, restore its statutory capital position, enhance underwriting capacity, and support long-term strategic growth initiatives.
“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,” Mr. Borishade said. “This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders.”
The Board further reaffirmed its commitment to transparency, robust governance, and the prudent deployment of the capital to be raised, working closely with regulators and professional advisers. This initiative underscores a strategic dedication to building a resilient, forward-looking insurer capable of meeting the expectations of policyholders, investors, regulators, and partners, while supporting broader economic activity and delivering sustainable returns to shareholders.
Following the successful approval of all resolutions, the Company will now proceed with the required regulatory filings and implementation steps to execute the Rights Issue and Private Placement.