Sovereign Trust Insurance Plc has taken the first major step in its multi-phase recapitalisation programme with the approval of a N5 billion Rights Issue, as the insurer moves to meet enhanced capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA).
The company disclosed the development in a notice to the Nigerian Exchange Limited (NGX) on Wednesday, signed by its Head of Corporate Communications and Investor Relations, Segun Bankole.
Bankole said the Rights Issue—approved by the Board of Directors chaired by Abimbola Oguntunde—marks “a strategic first step” in aligning with the NIIRA, which mandates stronger capital buffers and improved solvency across the insurance industry.
The capital raise is scheduled to be concluded in the first quarter of 2026. According to the statement, Sovereign Trust has already begun engagements with issuing houses, legal advisers, auditors, and regulators to finalise approvals ahead of opening the offer to shareholders.
The move follows resolutions adopted at the firm’s 30th Annual General Meeting on September 25, 2025, including shareholder approval for a broader capital raise of up to N20 billion to reinforce the insurer’s balance sheet, bolster liquidity, and expand underwriting capacity. Shareholders also endorsed a 5 kobo dividend per share.
The market reacted positively in October, with the insurer’s stock ranking among the top gainers on the NGX over several trading sessions—an outcome the company links to rising investor confidence.
Managing Director and Chief Executive Officer Olaotan Soyinka reaffirmed management’s commitment to repositioning the business, reiterating a goal to place Sovereign Trust among Nigeria’s top five insurers through improved operational efficiency, premium growth, and enhanced digital services. He encouraged shareholders to take full advantage of the Rights Issue, describing it as essential to supporting long-term innovation and sustainability.
The N5 billion capital raise is expected to form the foundation for the firm’s broader recapitalisation drive under the strengthened NIIRA regulatory regime.
