Coronation Insurance Plc has secured shareholders’ backing to raise fresh capital totalling N9.26 billion, a move aimed at reinforcing its balance sheet and positioning the underwriting firm for the next phase of growth amid tightening regulatory demands in the insurance industry.
The approval was granted at an Extraordinary General Meeting (EGM) of the company, held virtually, according to a disclosure submitted to the Nigerian Exchange Limited and signed by the company secretary, Mary Agha.
Details of the resolution show that the proposed capital injection will be executed through a private placement, a structure that enables the insurer to issue shares directly to selected investors rather than offering them to the wider investing public. The approach is typically adopted to accelerate fundraising timelines while targeting institutional or strategic investors.
Shareholders authorised the company to raise up to N9.257 billion, comprising N9 billion from the issuance of new shares and approximately N257 million earmarked to cover transaction-related costs. The company noted that the fundraising could also be denominated in foreign currency, subject to the determination of its board.
As part of the resolutions passed, shareholders approved an increase in the company’s share capital to accommodate the new issuance. The additional shares, once issued, will rank equally with existing ordinary shares in all respects, ensuring no preferential treatment in dividends or voting rights.
The board of directors was further empowered to determine the pricing, structure, and timing of the transaction. The proposed issue price was set at N2.16 per share, although directors retain the flexibility to adjust this depending on market conditions and investor negotiations. The board will also oversee the identification and engagement of prospective investors, as well as the execution of all agreements required to complete the transaction.
In addition, the directors received broad authorisation to appoint professional advisers and secure all necessary regulatory approvals. These include clearances from the National Insurance Commission, the Securities and Exchange Commission, and the Nigerian Exchange Limited.
The capital raise comes at a critical time for insurers operating in Nigeria, as companies across the sector intensify efforts to comply with impending recapitalisation requirements introduced by regulators. The exercise is expected to strengthen underwriting capacity, improve solvency margins, and enhance the ability of insurers to absorb large and complex risks.
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