Sovereign Trust Insurance Plc (STI) has entered the execution phase of its N5 billion recapitalisation programme following the successful completion of the structuring stage for its Rights Issue.
The milestone was confirmed during a formal signing ceremony held at the company’s headquarters in Lagos, signalling that all internal processes and professional engagements have been finalised. This clears the path for the insurer to strengthen its capital base in line with evolving regulatory requirements within Nigeria’s insurance industry.
Strategic Push for Market Leadership
The recapitalisation initiative represents a significant strategic move as the company positions itself to compete more aggressively in a rapidly evolving market landscape.
Speaking at the event, the Managing Director and Chief Executive Officer, Lucas Durojaiye, described the capital raise as central to the company’s long-term growth ambitions.
He noted that a strong capital base is essential to achieving STI’s goal of becoming a top-five player in Nigeria’s insurance sector, urging shareholders to fully participate in the Rights Issue to maximise their investment and support the company’s expansion plans.
Details of the Rights Issue
Following the completion of the signing process, the company is set to offer a total of 2,510,848,144 ordinary shares to existing shareholders.
Eligible investors will be able to subscribe at an offer price of N2.00 per share, based on a ratio of three new ordinary shares for every 17 shares currently held.
Management encouraged shareholders to take full advantage of the opportunity to increase their stake, describing the offer as a pathway to near-term value creation and long-term wealth growth.
Positioning for Industry Transformation
The company indicated that the timing of the capital raise aligns with broader regulatory and structural changes shaping Nigeria’s insurance sector, particularly ongoing reforms under the Nigerian Insurance Industry Reform Act 2025.
STI emphasised its commitment to becoming a preferred insurer for customers, a trusted investment destination for stakeholders, and an employer of choice within the industry.
Growth Outlook
Upon successful completion, the Rights Issue is expected to significantly enhance the company’s underwriting capacity, enabling it to take on larger risks and strengthen its competitive positioning in an increasingly consolidating market.
With the execution phase now underway, Sovereign Trust Insurance Plc appears poised to enter its next growth stage, backed by stronger capitalisation and a clearly defined strategic direction.
