Nigeria’s Guinea Insurance is seeking to raise $4.1 million (₦5.8 billion) through a rights issue as it races to comply with the new capital requirements for insurers ahead of the July 2026 deadline.
The Nigerian general insurer has applied to the Nigerian Exchange Limited (NGX) for approval to launch the offer, according to a notice issued by the exchange on Wednesday, January 21, 2026.
The fundraising comes with less than six months left before the recapitalisation deadline set by the National Insurance Commission (NAICOM).
Under rules announced in August 2025, NAICOM raised the minimum capital threshold for non-life insurers to $10.5 million (₦15 billion) from $2.1 million (₦3 billion), part of a broader effort to strengthen balance sheets and improve the industry’s capacity to absorb risk. Life insurers are now required to hold at least $7 million (₦10 billion) in capital, while reinsurers must meet a $24.6 million (₦35 billion) threshold.
Guinea Insurance reported a capital base of about $2.8 million (₦4 billion) at the end of 2024, leaving it significantly short of the new requirement.
The planned rights issue would mark an initial step towards closing that gap, though the company will still need to raise additional funds in the coming months.
The offer will comprise more than 5.29 billion ordinary shares priced at ₦1.10 each, with a par value of 50 kobo.
Existing shareholders will be entitled to subscribe for two new shares for every three held. Forte Financial Limited and Mega Equities Limited are acting as stockbrokers on the transaction.
Profits collapse in Q3
The capital raise comes at a difficult time for the insurer. Guinea Insurance posted a net profit of $26,570 (₦37.66 million) for the nine months to Sept. 30, 2025, a sharp 93% drop from $390,741 (₦555.33 million) in the same period a year earlier.
Market participants say the collapse in earnings could weigh on investor appetite for the rights issue, especially given the scale of funding still required to meet regulatory thresholds.
Analysts note that while recapitalisation is designed to improve sector stability, weaker insurers may struggle to attract capital which could trigger a wave of mergers and acquisitions.
Industry backdrop highlights balance-sheet pressures
The fundraising push comes as Nigeria’s insurance industry reports strong headline growth in assets. Total sector assets rose to $3.2 billion (₦4.619 trillion) by end-Q2, 2025, according to the Central Bank of Nigeria’s latest quarterly statistical bulletin.
That represents a $319.3 million (₦454 billion) increase quarter-on-quarter, or 10.9%, and a 25.3% rise compared with $2.6 billion (₦3.687 trillion) a year earlier. Analysts attribute the expansion to higher premium inflows, stronger investment returns and increased digital adoption across the industry.
However, liabilities have risen in tandem, also reaching $3.2 billion (₦4.619 trillion) in Q2, highlighting balance sheet pressures despite the asset growth.
Industry observers say the parallel rise in assets and liabilities reinforces the urgency of NAICOM’s recapitalisation drive.
For firms like Guinea Insurance, the challenge will be not just raising capital, but doing so in a way that restores investor confidence and supports sustainable profitability.
NB: $1 = ₦1,422 as of January 23, 2026
