Sovereign Trust Insurance Plc has successfully met a key regulatory requirement by depositing N1.5 billion with the Central Bank of Nigeria ahead of the May 31, 2026 deadline, in compliance with directives issued by the National Insurance Commission (NAICOM).
The statutory deposit, which represents 10 percent of the minimum capital requirement for non-life insurers, is part of broader reforms introduced under the Nigerian Insurance Industry Reform Act 2025 (NIIRA). The move signals the company’s progress in its ongoing recapitalization programme and reinforces its commitment to regulatory compliance and financial stability.
Industry observers view the early remittance as a positive indicator of the firm’s preparedness to adapt to the evolving regulatory landscape, aimed at strengthening the resilience and competitiveness of insurance operators in Nigeria.
As part of its capital-raising strategy, Sovereign Trust Insurance recently launched a rights issue on May 4, 2026, targeting existing shareholders. The offer seeks to raise up to N5 billion through the issuance of over 2.5 billion ordinary shares priced at N2.00 each. The offer, structured on the basis of three new shares for every 17 held as of March 17, 2026, is scheduled to close on June 10, 2026.
Commenting on the development, Managing Director and Chief Executive Officer Lucas Durojaiye described the successful deposit as a critical step in the company’s growth trajectory. He emphasized that the milestone underscores the firm’s dedication to maintaining financial solvency and meeting regulatory obligations.
According to him, the achievement enhances confidence among shareholders, policyholders, and business partners, while positioning the company for sustained value creation.
Durojaiye added that the insurer will continue to pursue strategic initiatives focused on strengthening its capital base, improving operational efficiency, and driving innovation. He noted that the company remains committed to expanding its market presence and delivering improved insurance solutions to customers nationwide.
With the recapitalization process underway and regulatory benchmarks being met ahead of schedule, Sovereign Trust Insurance appears poised to consolidate its position within Nigeria’s increasingly competitive insurance sector.
