Universal Insurance Plc has entered the final phase of its capital restructuring programme after formally executing transaction documents for a ₦3.2 billion Rights Issue.
The signing ceremony, held in Lagos, marks the completion of the preparatory stage and positions the insurer to seek final regulatory approval from the Securities and Exchange Commission Nigeria ahead of launching the offer to the market.
Under the proposed terms, the company plans to issue 2.67 billion ordinary shares of 50 kobo each at ₦1.20 per share. The Rights Issue will be offered on a ratio of one new share for every six shares currently held. Eligibility is restricted to shareholders listed in the company’s register as of the close of business on March 30, 2026.
Speaking at the event, Chairman Jasper Nduagwuike highlighted the company’s long-standing resilience, noting its ability to remain operational for over six decades despite economic fluctuations and industry challenges.
He stated that the company has achieved consistent growth over the past five years and remains among a limited number of insurers established in the early 1960s that continue to operate today.
Nduagwuike described the recapitalisation initiative as a strategic move aimed at strengthening the company’s financial position, enhancing competitiveness, and expanding its market share within Nigeria’s insurance sector. He also encouraged shareholders to fully participate in the offer to ensure its success.
The capital raise is expected to significantly improve the company’s underwriting capacity and overall financial stability. By strengthening its capital base, Universal Insurance aims to support new growth strategies, improve operational efficiency, and expand its footprint across the industry.
This Rights Issue forms part of a broader response to sweeping regulatory changes introduced under the Nigeria Insurance Industry Reform Act 2025. The legislation, signed into law by Bola Tinubu in 2025, mandates a substantial increase in minimum capital requirements across the insurance sector.
Under the new framework, non-life insurers are required to raise their capital base from ₦3 billion to ₦15 billion by July 2026—a fivefold increase. Compliance is mandatory, with failure potentially resulting in licence revocation or enforced consolidation, as the National Insurance Commission seeks to strengthen the industry in line with Nigeria’s broader economic ambitions.
