Regency Alliance Insurance Plc is set to ask its shareholders to approve a special resolution to raise N3 billion in new equity capital at its upcoming 31st Annual General Meeting (AGM) scheduled for October 30, 2025, in Lagos.
This move comes as part of the company’s broader strategy to comply with regulatory requirements, strengthen its financial base, and position itself for future growth.
The capital raise, which may be executed via public offer, private placement, rights issue, or a combination of these methods, is among the key items on the planned AGM agenda filed with the Nigerian Exchange Limited (NGX) on Tuesday, October 7.
The proposed N3 billion issuance is in response to a regulatory directive which requires insurance firms to boost their capital base. The planned share issuance is coming at a time when the Nigerian Insurance Industry Reforms Act (NIIRA) 2025, recently signed into law by President Bola Ahmed Tinubu is being implemented.
NIIRA has overhauled the legal and operational framework of the insurance sector, mandating stricter capital adequacy, governance, and solvency standards.
This initiative aligns with Section 124 of the Companies and Allied Matters Act (CAMA) 2020, which empowers public companies to increase share capital subject to shareholder approval. Regency Alliance’s decision is seen as a proactive step to bolster its capital base and meet the new requirements of the National Insurance Commission (NAICOM).
In addition to the proposed capital raise, shareholders will consider:
The company’s register of members will be closed from October 21 to October 25, 2025, to prepare for the AGM. Shareholders with unclaimed dividends have been urged to contact Apel Capital Registrars Ltd to update their records and submit e-dividend forms — a growing concern in Nigeria’s capital market.
Proxy participation
For shareholders unable to attend physically, proxy representation is allowed with submission at least 48 hours before the AGM. The company has yet to confirm whether a hybrid (virtual) participation option will be available.
H1 2025 performance
Regency Alliance Insurance Plc reported a profit before tax of N240.2 million for the period ended June 30, 2025, marking a significant decline of 67.6% compared to N740.4 million recorded in the same period of 2024.
Insurance revenue fell to N5.07 billion from N6.92 billion in H1 2024, reflecting a contraction in the company’s core underwriting business.
The Nigerian Insurance Industry Reforms Act (NIIRA) 2025 is a landmark legislation aimed at revitalizing Nigeria’s insurance sector. The Act:
Introduces tiered capital requirements based on risk exposure and business class.