Fortis Global Insurance to Strengthen Capital Structure With Share Reconstruction

Fortis Global Insurance Plc has received approval from the regulator to reconstruct its share capital as part of the insurer’s strategic plans to reshape its overall capital structure.

In a statement on the NGX, the company said it has obtained regulatory approvals to reconstruct its issued Share Capital from N6.45 billion comprising 12.911 billion ordinary shares of 50 Kobo each to N1.61 billion comprising 3.22 billion ordinary shares of 50 Kobo each on the basis of one (1) new ordinary share for every four (4) existing ordinary shares held.

This exercise means that suspension of trading will be placed on the shares of the company for up to two (2) weeks beginning from Wednesday, 17th June 2026.

Why embark on share reconstruction

Companies embark on a share reconstruction so as to write off accumulated losses in the balance sheet by revaluing assets and the consequences are that the ordinary share capital and share prices reduces while the earnings per share increases.

Accumulated losses and deteriorating solvency margin calls for strategic plans

Currently, Fortis Global has a total accumulated loss of N18.87 billion in its books due to recurring operating losses brought on by the Daewoo loans and huge salary expenses.

While the company is not technically insolvent, it is walking on rotten ice as it does not have the financial strength to pay claims to its policyholders.

The insurer is facing mounting solvency risk as a deteriorating solvency margin ratio of just 5 percent by the end of the 2025 financial year limits the insurer’s legal capacity to underwrite policies and meet future obligations, according to data gathered by MoneyCentral.

Most regulatory authorities—including NAIC, IRDAI, and EIOPA under Solvency II—mandate a minimum solvency margin ratio of 150% (or 1.5x). A weak ratio indicates that an insurance firm’s available capital is failing to keep pace with its liabilities and underlying risk exposure, a critical warning sign requiring urgent capital and risk management adjustments.