With the July 31 recapitalisation deadline fast approaching, Guinea Insurance has moved to shore up its capital base, commencing a N5.8 billion rights issue to remain competitive in the evolving insurance landscape.

The insurer formally kicked off the exercise with the signing of the issue on March 16, 2026, offering 5.29 billion ordinary shares of 50 kobo each at N1.1 per share based on two new shares for every three existing shares held.

The move comes amid mounting pressure on underwriters to meet new capital thresholds set by the National Insurance Commission (NAICOM).

Operators are in a race to strengthen balance sheets or risk consolidation through mergers and acquisitions.

Chairman of the company, Temitope Borishade, described the capital raise as a critical step in repositioning the firm for growth and improved service delivery.

“This capital raise represents an important step in repositioning the insurer to meet current realities while expanding our capacity to deliver innovative insurance solutions across key sectors of the economy,” he said, adding that the exercise signals a renewed commitment to customers, brokers, and shareholders.

Managing Director/ Chief Executive Officer, Ademola Abidogun, said the initiative goes beyond regulatory compliance, stressing that it is aimed at building a stronger and more resilient company.

According to him, the fresh capital will enhance financial stability, boost underwriting capacity, support investments in technology and enable expansion into retail and SME segments where insurance penetration remains low.

A financial sector analyst, Johnson Chukwu, at the weekend, noted that while recapitalisation is necessary, the real challenge lies in translating new capital into sustainable profitability.

Similarly, Chief Executive Officer of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, said the recapitalisation could strengthen the sector but warned that structural challenges must also be addressed.

“The insurance sector has significant growth potential, but low penetration, weak consumer trust and limited enforcement of compulsory insurance remain key constraints,” he said.