• Shareholders of Guinea Insurance approved a capital increase on Sept 8.

• Nigeria’s new law raises minimum capital for non-life insurers to 15 bln nairas.

• Guinea Insurance had 5.2 bln nairas in equity at end-2024, well below target.

Shareholders of Nigeria’s Guinea Insurance Plc, a general insurance company, have approved a capital increase. The decision, announced on September 8, 2025, was taken during the firm’s 67th annual general meeting.

The move is aimed at meeting new requirements set by Nigeria’s 2025 Insurance Industry Reform Act (NIIRA). The exact amount to be raised has not yet been disclosed.

Guinea Insurance said it is considering several options: private placement, rights issue, public offer, or a combination of these. The plan is subject to approval by the National Insurance Commission (NAICOM), which regulates the sector. The company noted that this flexibility will help it strengthen its capital base quickly to comply with the new equity rules.

Insurance sector reform

In mid-August 2025, NAICOM gave insurance companies 12 months to meet higher minimum capital thresholds. Non-life insurers such as Guinea Insurance must raise capital from 3 billion to 15 billion nairas. Life insurers must reach 10 billion nairas, up from 2 billion, while reinsurers must raise theirs from 10 billion to 35 billion nairas. The reform is designed to improve insurers’ financial strength, claims settlement capacity, and market confidence.

As of end-2024, Guinea Insurance had a paid-up share capital of 4 billion nairas, well below the new requirement.

Financial performance

Founded in 1948 as a subsidiary of the British Empire West Africa Corporation, Guinea Insurance operates in several areas of general insurance in Nigeria, including auto, fire, marine, engineering, oil and gas.

Audited results for 2024 show gross written premiums rising 35.6% to 2.94 billion nairas, while insurance income grew 36.6% to 2.84 billion nairas. Shareholders’ equity increased from 3.5 billion nairas in 2023 to 5.2 billion in 2024.

Despite these gains, the gap with the new capital requirements remains significant. The company will need fresh funds to reach the 15 billion naira threshold. The reform comes as Nigeria’s insurance sector, though still a small contributor to GDP, is seen as having strong growth potential.