AXA Mansard Insurance Plc has secured shareholders’ approval to raise up to ₦18.3 billion through a rights issue, giving the insurance company the go-ahead to pursue additional capital to strengthen its financial position.

The approval was granted at the company’s 34th Annual General Meeting, held virtually on Friday, October 9, 2026, according to resolutions issued under the signature of Company Secretary Omowunmi Mabel Adewusi.

Under the approved proposal, AXA Mansard will issue new ordinary shares with a nominal value of ₦2 each to existing shareholders in proportion to their current shareholdings. The transaction remains subject to the necessary regulatory approvals.

The company’s board of directors will determine the final size of the offer, the number of shares to be issued, the offer price and other conditions governing the rights issue.

The resolutions also allow the company to offer shares not taken up by eligible shareholders to other existing shareholders who have indicated an interest in buying additional shares, subject to the applicable rules and conditions.

Once the rights issue is completed, AXA Mansard’s issued share capital will be adjusted to reflect the new shares allotted. The company’s memorandum and articles of association will also be amended to reflect the change.

Shareholders further authorised the board to appoint professional advisers, execute the necessary transaction documents and obtain regulatory clearances required to complete the exercise. Lawful steps already taken by the board and management in preparation for the proposed capital raise were also ratified.

Although the approval clears an important corporate hurdle, it does not mean the company has already raised the ₦18.3 billion. Completion will depend on regulatory clearance, the board’s final terms and the implementation of the offer. The resolutions did not specify a launch date or subscription period.

Beyond the capital-raising proposal, shareholders approved the re-election of Kola Adesina, Gbola Akinola, SAN, and Tope Adeniyi as non-executive directors.

They also approved the appointment of Ernst & Young as the company’s external auditor and authorised the board to determine the auditor’s remuneration and expenses based on the audit committee’s recommendation.

The meeting further approved annual remuneration of ₦2.5 million for the chairman and ₦1.5 million for each non-executive director for the 2026 financial year and subsequent years until the amounts are reviewed at an annual general meeting.

For the 2026 financial year, the statutory audit committee is to include Adebisi Bakare, Henry Akwara and Dayo Afelomo of WSTC Financial Services Limited as shareholder representatives, alongside Abiola Bada and Dan Shuaib as representatives of the board in their capacities as independent non-executive directors.

Shareholders also received the company’s audited financial statements for the year ended December 31, 2025, together with the reports of the directors, external auditor and statutory audit committee.

The rights issue comes as insurance companies continue to navigate regulatory requirements, capital needs and changing market conditions. For AXA Mansard, the proposed fundraising provides an opportunity to reinforce its capital base, although the ultimate impact will depend on the amount raised and how the funds are deployed.

Investors will be watching for further announcements from the company on the offer price, the number of shares available, eligibility dates and the timetable for the rights issue.

Reporting by TalkNaijaMedia