• Guinea Insurance plans 5.8 billion naira rights issue to boost capital

• Offer seeks NGX approval; two new shares for every three held

• Fundraising targets NAICOM recapitalisation after profit sharply declined

Nigerian general insurer Guinea Insurance plans to raise 5.8 billion naira ($4.2 million) in a rights issue to strengthen its capital, after reporting a capital base of 4 billion naira at end-2024.

The company has applied to Nigerian Exchange Limited (NGX) for approval to launch the offer, NGX said in a notice on Wednesday, Jan. 21, 2026. The rights issue will comprise more than 5.29 billion ordinary shares at an offer price of 1.10 naira each, with a par value of 50 kobo.

Shareholders will be able to subscribe for two new shares for every three held. Forte Financial Limited and Mega Equities Limited submitted the application as stockbrokers for Guinea Insurance Plc.

The fundraising aims to help the company meet recapitalisation requirements set by the National Insurance Commission (NAICOM), which in August 2025 gave insurers one year to raise minimum share capital.

NAICOM raised the minimum capital for non-life insurers to 15 billion naira from 3 billion, while life insurers must now hold at least 10 billion naira and reinsurers 35 billion naira.

The rights issue would mark an initial step, though Guinea Insurance will still need to raise more funds in the coming months to meet the threshold.

The move comes as profitability has fallen sharply. Guinea Insurance posted a net profit of 37.66 million naira for the nine months to Sept. 30, 2025, down from 555.33 million naira a year earlier.

Guinea Insurance was established in 1948 as a subsidiary of the British Empire West Africa Corporation.

SG