AFRICAN ALLIANCE PLANS N12BN RECAPITALISATION

African Alliance Insurance Plc is considering a combination of convertible debt and asset sales as it works to meet regulatory recapitalisation requirements.

The insurer’s shareholders approved a plan to raise up to N12bn at an Extraordinary General Meeting held in Lagos on September 23, 2026.

Under the approved plan, the company may raise funds through private placement, rights issue, public offer, zero-coupon convertible subordinated debt notes and the sale of assets.

The board was authorised to determine the terms of the convertible debt, including the conversion price and other conditions, subject to regulatory approvals and agreements with investors.

The company may also sell properties and other assets as part of the recapitalisation programme. It can revalidate existing shares or increase its share capital where necessary to support the capital-raising exercise.

The move comes as African Alliance seeks to strengthen its capital base and comply with the requirements of the Nigerian Insurance Industry Reform Act 2025. The company had previously submitted its recapitalisation plan to the National Insurance Commission.

African Alliance recently emerged from regulatory intervention after NAICOM handed operational control back to a newly constituted board in June 2026. The commission said the insurer would continue to be monitored as it works on its recapitalisation and compliance with prudential requirements.

The insurer’s shareholders also authorised the board to engage professional advisers and complete the regulatory processes required to implement the capital-raising programme.