By NIyi Jacobs
Guinea Insurance Plc has recorded a major milestone in its ongoing transformation journey as shareholders approved the company’s recapitalisation and capital raise plan at a recent Extraordinary General Meeting (EGM) held virtually in Lagos.
The meeting, which was conducted in full compliance with the Business Facilitation (Miscellaneous Provisions) Act 2022 and the Companies and Allied Matters Act (CAMA) 2020, attracted strong participation from shareholders, regulators, and other key stakeholders, underscoring broad confidence in the company’s strategic direction.
At the EGM, shareholders approved an increase in the company’s minimum issued share capital from ₦4.0 billion, comprising 8 billion ordinary shares of 50 kobo each, to ₦19.0 billion, made up of 38 billion ordinary shares of 50 kobo each. They also endorsed plans to raise up to ₦15.0 billion in fresh equity through a combination of Rights Issue and Private Placement.
The approvals follow a No-Objection from the National Insurance Commission (NAICOM), signalling regulatory confidence in the Board’s recapitalisation strategy and providing a clear pathway for strengthening the company’s capital base.
The expanded capital structure is expected to not only restore Guinea Insurance’s statutory capital position but also provide the financial headroom required for targeted investments in technology, data-driven underwriting, digital distribution, and service automation. These initiatives are aimed at improving operational efficiency, enhancing customer engagement, and delivering faster, more personalised services.
Speaking at the meeting, Chairman of the Board, Mr. Temitope Borishade, described the shareholders’ approval as a defining moment in the company’s transformation.
“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,” 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 reaffirmed its commitment to transparency, strong corporate governance, and the prudent deployment of the funds to be raised, noting that it would continue to work closely with regulators and professional advisers throughout the process.
Following the successful passage of all resolutions, Guinea Insurance Plc will now proceed with the necessary regulatory filings and implementation steps required to execute the Rights Issue and Private Placement, as it positions itself for sustainable growth and improved value delivery to policyholders, investors, and other stakeholders.
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