REGENCY ALLIANCE RAISES ₦6.04BN, AWAITS REGULATORY VERIFICATION

Regency Alliance Insurance Plc has raised ₦6.04 billion through a combination of rights issue and private placement as it moves towards completing the regulatory verification stage of Nigeria’s insurance industry recapitalisation exercise.

The insurer raised ₦2.54 billion through its rights issue and an additional ₦3.5 billion from a private placement targeted at strategic investors.

The company said the fresh capital, combined with its existing admissible assets after deducting admissible liabilities, is expected to place it above the ₦15 billion minimum capital requirement for general insurance companies under the Nigeria Insurance Industry Reform Act 2025.

Regency Alliance said the proceeds had been transferred to a dedicated Central Bank of Nigeria account following the necessary regulatory approvals.

The Securities and Exchange Commission has also approved the allotment of shares arising from the two capital-raising exercises, with the process currently being completed.

However, the company’s compliance is still subject to verification by the National Insurance Commission. Regency Alliance said it has submitted the required documents and is currently undergoing the commission’s assessment.

The development highlights that raising the required capital is only one stage of the recapitalisation process, as insurers must also satisfy regulatory requirements before their compliance can be confirmed.

Regency Alliance said it remains committed to meeting the regulator’s requirements and strengthening its financial capacity to support larger risks and improve its competitiveness in the insurance market.