The shareholders of Guinea Insurance Plc have expressed support for the plans of the company to raise additional capital.

According to a statement from the firm, the approval was given at the company’s recent Extraordinary General Meeting held virtually.

The PUNCH reports that there is an ongoing recapitalisation exercise in the insurance sector following the presidential assent to the Nigerian Insurance Industry Reform Act 2025, which increased the capital base of operators in the sector.

At the EGM, shareholders voted in favour of the plan to increase the company’s minimum issued share capital from N4.0bn of eight billion ordinary shares of 50 kobo each to N19.0bn, comprising 38 billion ordinary shares of 50 kobo each. They also approved the plan to raise up to N15bn in additional equity through a combination of Rights Issue and Private Placement.

This followed the receipt of a No-Objection approval from the National Insurance Commission, reflecting regulatory confidence in the Board’s strategy and providing a clear pathway to reinforce the company’s capital base.

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. This recapitalisation plan is not only a regulatory requirement but also a strategic opportunity to create sustainable value for all our stakeholders,” Borishade said.

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.

Borishade maintained that the initiative underscored a 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.

The underwriter added that 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.

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.

The EGM, conducted in full compliance with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act 2020, saw strong participation from shareholders, regulators, and key stakeholders, reflecting confidence in the company’s strategic direction.