Regency Alliance Insurance Plc has announced plans to raise N3 billion in fresh equity capital as part of efforts to strengthen its financial position, comply with new regulatory requirements, and prepare for long-term growth. The proposal will be tabled before shareholders at the company’s 31st Annual General Meeting (AGM) scheduled to hold on October 30, 2025, in Lagos.
The insurer disclosed in a notice filed with the Nigerian Exchange Limited (NGX) that the capital raise could be executed through a public offer, rights issue, private placement, or a combination of these methods. The board has also requested shareholders to authorise the directors to allot the new shares as part of its recapitalisation plan.
Other items on the AGM agenda include the approval of the company’s audited financial statements for the year ended December 31, 2024, the election and remuneration of directors, and the appointment of external auditors alongside the approval of their fees.
To enable the meeting, the company’s register of members will be closed from October 21 to October 25, 2025. Regency Alliance has urged shareholders with unclaimed dividends to update their records and submit e-dividend forms with Apel Capital Registrars Ltd, amid concerns over the rising volume of unclaimed dividends in the Nigerian capital market. Proxy representation will be allowed, provided forms are submitted at least 48 hours before the AGM, though the company has not confirmed if hybrid participation will be available.
The capital raise comes against the backdrop of weaker earnings in the first half of 2025. Regency Alliance reported a profit before tax of N240.2 million for the six months ended June 30, a steep 67.6 percent decline compared to N740.4 million posted in the same period of 2024. Insurance revenue also fell sharply to N5.07 billion from N6.92 billion, reflecting pressure on its core underwriting business.
Despite higher net investment income, which rose to N838 million from N740.2 million, overall insurance and financial results dropped 28 percent year-on-year to N1.19 billion, down from N1.66 billion. Rising operating costs weighed further on performance, with other operating expenses climbing to N529.7 million from N345.6 million.
Earnings per share fell to 3.60 kobo, compared to 11.10 kobo in H1 2024. The company also slipped into a loss after tax of N182.4 million in the second quarter (April–June), reversing a profit of N286.8 million in the same period of 2024.
Regency Alliance’s capital raise is a direct response to the National Insurance Industry Reforms Act (NIIRA) 2025, which was signed into law earlier this year by President Bola Ahmed Tinubu. The new legislation introduced stricter capital adequacy, governance, and solvency standards across the industry, compelling insurers to recapitalise in order to strengthen the sector’s resilience.
The company noted that its planned issuance aligns with Section 124 of the Companies and Allied Matters Act (CAMA) 2020, which empowers public companies to increase share capital with shareholder approval. Analysts say the move demonstrates a proactive approach by Regency Alliance to boost its capital base and position itself for compliance with the National Insurance Commission (NAICOM)’s updated requirements.
The company’s shareholders will ultimately determine how the N3 billion raise is executed, but industry watchers expect the recapitalisation to help cushion recent financial headwinds while aligning with the sector-wide reforms reshaping Nigeria’s insurance market.
