Regency Alliance Insurance Plc has commenced a N3.04 billion rights issue as the insurer seeks to strengthen its capital base, enhance underwriting capacity and accelerate investments in technology and product innovation.
The company disclosed the development in a statement signed by Anu Shobo, company secretary, following the formal signing of its Rights Issue Agreement at the insurer’s corporate headquarters in Lagos.
According to the company, the offer consists of 3.20 billion ordinary shares of 50 kobo each at a price of 95 kobo per share, on the basis of one new ordinary share for every five ordinary shares currently held by shareholders.
The capital raising exercise forms a key component of Regency Alliance’s growth strategy and is expected to provide the financial resources needed to expand operations, strengthen its market position and improve service delivery across its business lines.
The insurer said the proceeds from the rights issue would be deployed towards enhancing its underwriting capacity, expanding digital infrastructure and funding the development of innovative insurance products designed to meet the evolving needs of customers.
The company noted that the offer also provides existing shareholders with an opportunity to increase their stake in a business that has built its reputation on disciplined underwriting, prudent financial management and customer-focused service delivery.
Speaking at the signing ceremony, Wale Taiwo, acting chairman of Regency Alliance Insurance, described the exercise as a significant step in the company’s growth journey and a reflection of confidence in its long-term strategy.
“This capital raise will give us the firepower to meet evolving risks, expand our reach and deepen the promise we make to every policyholder that Regency Alliance will be there when it matters most,” he said.
Also speaking, Bode Oseni, managing director of the company, said the funds would support the insurer’s ongoing digital transformation programme and enable it to develop innovative solutions targeted at underserved market segments.
“The proceeds from this Rights Issue will accelerate our digital transformation, enhance claims efficiency and enable us to introduce innovative products tailored to SMEs, Gen Z and other underserved segments across Nigeria and beyond,” he said.
He noted that the insurer remains committed to leveraging technology and innovation to improve customer experience while sustaining its financial strength in an increasingly competitive insurance market.
The rights issue comes at a time when insurance operators are strengthening their balance sheets and investing in technology-driven solutions to improve market penetration, operational resilience and customer engagement.
