African Alliance Insurance to raise N12 billion in capital

African Alliance Insurance Plc has received shareholder approval to raise up to N12 billion in new capital to meet regulatory requirements. The decision was reached during an Extraordinary General Meeting held in Lagos.

The recapitalisation strategy includes several financing options, such as private placements, rights issues, public offers, and the sale of assets. A central component of the plan involves the issuance of zero-coupon convertible subordinated debt notes through private placement. These notes may later convert into ordinary shares based on specific triggers and terms determined by the board.

This move follows a period of regulatory intervention by the National Insurance Commission (NAICOM), which returned operational control of the company to a newly constituted board in late 2024. To support the capital raise, shareholders also authorized the company to dispose of properties and other assets, and to potentially issue legacy or additional shares if necessary.