Insurance Firm Deepens Recapitalisation Drive With N15.6bn Rights Offer

Great Nigerian Insurance Plc (GNI) has intensified its recapitalisation programme following approval from the Securities and Exchange Commission (SEC) to proceed with a N15.6 billion rights issue.

The insurer disclosed that it will offer six billion ordinary shares of 50 kobo each at N2.60 per share to existing shareholders, on the basis of six new ordinary shares for every seven ordinary shares held as of June 4, 2026.

In a notice to shareholders, stakeholders, the National Association of Securities Dealers (NASD), and the investing public, the company confirmed that it had obtained the necessary regulatory approval and would proceed with the offer in accordance with the terms approved by the SEC.

The rights issue forms part of the company’s broader efforts to strengthen its capital base and position its operations for sustained growth, particularly in its general business segment.

GNI noted that the latest capital raising exercise follows the successful completion of an N8.2 billion private placement, which increased its combined capital base to N21.3 billion.

The development brought the company into full compliance with the National Insurance Commission’s (NAICOM) minimum capital requirement of N10 billion for life insurance business operations.

According to the company, the current rights offer is expected to further enhance its financial strength and support the recapitalisation of its general insurance business, while positioning it comfortably above NAICOM’s N15 billion minimum capital threshold for general business operators.

The qualification date for the rights issue is June 4, 2026, while the application list opened on June 15 and will remain open until June 26, 2026.

GNI stated that the gross proceeds of N15.6 billion would be deployed primarily towards capital injection into its general business operations and the settlement of outstanding claims, in line with the objectives presented to investors.

The company added that rights circulars and application materials would be made available to eligible shareholders through its registrar and other approved channels. It advised shareholders seeking additional information on the offer to contact their stockbrokers or financial advisers.

The rights issue marks another significant step in GNI’s ongoing capital-strengthening strategy to enhance operational capacity, improve claims-paying ability, and support long-term business growth.