Coronation Insurance Plc has received shareholders’ approval for a N9.26 billion capital raise to strengthen its financial base and position the company for growth.
The approval was granted at the company’s Extraordinary General Meeting (EGM), held virtually on Friday, April 24, 2026, as disclosed in a statement signed by the Company Secretary, Mary Agha.
The approved capital raise will be conducted through a private placement, allowing the insurer to sell shares directly to selected investors, bypassing the public markets.
What the statement is saying
During the meeting, shareholders passed several resolutions authorizing the company to raise up to N9.257 billion. This includes N9 billion in fresh share issuance and approximately N257 million to cover the costs of the transaction.
- “The company is authorized to raise additional capital of up to N9.257 billion or such other amount or the equivalent in foreign currency as the Board of Directors may determine, through a Private Placement.”
The resolution grants the board the flexibility to adjust the amount or issue shares in foreign currency based on market conditions.
The new shares will be priced at N2.16 per share, with the Board of Directors granted full authority to identify investors, negotiate terms, and finalize the placement’s timeline.
Get up to speed
This approval comes shortly after Coronation Insurance announced its audited financial results for the year ending December 31, 2025, which showed a decline in pre-tax profit to N9.65 billion, a 30.4% drop from N13.81 billion in 2024.
- However, the company demonstrated strong revenue growth, with insurance revenue rising 51.4% to N74.83 billion, up from N49.47 billion the previous year.
- The profit decline was largely due to the absence of a foreign exchange gain, which amounted to over N8 billion in 2024.
Nevertheless, net insurance and investment income showed a strong 148% year-on-year growth, reaching N17.675 billion compared to N7.105 billion in 2024.
More insights
Following the EGM, the company’s share capital will be increased to accommodate the new shares, which will rank equally with existing shares.
The Board of Directors now has the full authority to negotiate with potential investors and finalize the timing of the placement, subject to the necessary approvals from the National Insurance Commission (NAICOM), the Securities and Exchange Commission (SEC), and the Nigerian Exchange Limited (NGX).
This capital raise aligns with Coronation Insurance’s proactive approach to meet new recapitalization requirements in the Nigerian insurance sector.
What you should know
In its 2025 financial results, Coronation Insurance reported impressive growth in total assets, which rose by 28% to N98.1 billion, primarily driven by an increase in financial assets at fair value.
The company also saw growth in premium receivables, which rose to N1.80 billion, up from N1.49 billion in 2024. Additionally, equity increased to N48.49 billion from N39.8 billion in 2024, supported by retained earnings of N15.498 billion, up from N9.797 billion the previous year.
Coronation Insurance’s successful capital raise is expected to enhance its ability to meet evolving market needs, maintain regulatory compliance, and expand its operational capabilities in the growing Nigerian insurance market.
