Regency Alliance Insurance Plc has officially launched a N3.04 billion rights issue, a strategic move designed to significantly strengthen its capital base and fuel business expansion initiatives.
The company announced this development on June 17, 2026, through a statement signed by its Company Secretary, Anu Shobo. This capital raise follows the execution agreement signing at the company's Lagos headquarters.
The funds generated will be instrumental in enhancing the company's underwriting capacity, supporting the expansion of its digital infrastructure, and driving the development of new products across Nigeria.
The rights issue presents an opportunity for existing shareholders to increase their stake in Regency Alliance Insurance. The insurer stated that this initiative is part of its ongoing efforts to sustain value creation through disciplined underwriting, responsive customer service, and prudent financial management.
The offer details include 3,201,000,000 ordinary shares of 50 Kobo each, priced at 95 Kobo per share. This is structured on a basis of one new ordinary share for every five ordinary shares currently held by existing shareholders.
Acting Chairman of Regency Alliance, Chief Wale Taiwo, SAN, emphasized the significance of the signing ceremony, stating, “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.”
Managing Director, Mr. Bode Oseni, added that the capital raise will accelerate the company's digital transformation, enhance claims efficiency, and enable the introduction of innovative products specifically tailored for Small and Medium-sized Enterprises (SMEs), Gen Z, and other underserved market segments.
The acceptance list for the rights issue is scheduled to open on June 22, 2026, and will close on July 3, 2026. Eligible shareholders are strongly encouraged to complete and submit their applications within this period.
This rights issue structure is intended to allow Regency Alliance Insurance to raise essential capital while enabling existing shareholders to maintain their proportionate ownership, thereby protecting them from dilution and allowing participation in the company's future growth.
The proceeds are earmarked for bolstering underwriting capacity, improving claims efficiency, and supporting investments in technology and customer experience. The company also aims to develop new products catering to SMEs, Gen Z, and other underserved segments.
With the agreement finalized and all necessary regulatory approvals secured from the Securities and Exchange Commission and Nigerian Exchange Limited, Regency Alliance Insurance will now proceed with shareholder communications and the implementation of the offer.
This move builds upon the company's previous capital-raising efforts. In October 2025, Regency Alliance Insurance sought and obtained shareholder approval for a N3 billion share issuance, which was part of its broader strategy to comply with regulatory capital requirements and strengthen its financial position.
The earlier N3 billion issuance was a direct response to a regulatory directive aimed at increasing the capital base of insurance firms, in line with the Nigerian Insurance Industry Reforms Act 2025, recently signed into law by President Bola Ahmed Tinubu.
