Regency Alliance unveils N3bn rights issue

Regency Alliance Insurance Plc has unveiled a N3 billion rights issue aimed at boosting its capital strength, expanding operations and accelerating its digital transformation efforts.

The signing ceremony, held at the company’s headquarters in Lagos, brought together members of the Board of Directors, management, issuing house, legal advisers, stockbrokers and other key stakeholders.

The Rights Issue is structured on the basis of one new ordinary share of 50 kobo each for every five ordinary shares held, giving existing shareholders the opportunity to increase their stake in the company while protecting themselves from dilution.

This was disclosed in a statement by the Acting Chairman, Chief Wale Taiwo, on Wednesday.

Taiwo, during the signing ceremony, held at the company’s headquarters in Lagos, which brought together members of the Board of Directors, management, issuing house, legal advisers, stockbrokers and other key stakeholders, described the occasion as a statement of belief in the company’s people, strategy and the trust of its customers and shareholders.

“Today’s signing is more than a formality. It is a statement of belief – belief in our people, our strategy, and the trust our customers and shareholders have placed in us over the years. 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.

Taiwo urged all eligible shareholders to take advantage of the offer, saying, “We are particularly encouraged by the unwavering support of our shareholders who have stood by the Company through its growth journey.

“We urge all eligible shareholders to take advantage of this Rights Issue and fully exercise their rights. By doing so, they will not only protect their investment from dilution but also participate directly in the exciting growth opportunities that lie ahead for Regency Alliance Insurance Plc.”

Also speaking, the Managing Director, Mr. Bode Oseni, said the proceeds would be deployed to accelerate the company’s digital transformation and expand its reach to underserved market segments.

“Regency Alliance has always prided itself on being agile, customer-focused, and financially sound. 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. We are not merely raising capital; we are raising our ambition,” he said.

Oseni expressed optimism that shareholders would embrace the opportunity, adding, “We remain optimistic that our shareholders will embrace this opportunity and demonstrate their confidence in the Company’s future by taking up their rights. Together, we are building a stronger and more competitive insurance institution.”

The Acceptance List will open on June 22, 2026 and close on July 3, 2026, with eligible shareholders encouraged to complete and submit their applications within the stipulated period.

The Rights Issue comes at a pivotal moment for Nigeria’s insurance industry, which has been undergoing significant regulatory-driven recapitalisation.

The National Insurance Commission has been pushing insurers to shore up their capital bases to strengthen solvency ratios, improve claims-paying capacity and position the sector to underwrite larger and more complex risks, a prerequisite for the industry to fulfil its potential in Africa’s largest economy.