Sovereign Trust Insurance Plc has announced that it has secured board approval to raise N5 billion in additional capital as part of its strategy to remain competitive and strengthen its financial position. The capital raise—approved by the board chaired by Mr. Abimbola Oguntunde—will be executed through a rights issue.
The move marks the first phase of the company’s broader recapitalisation agenda, undertaken to align with the new capital requirements stipulated under the Nigerian Insurance Industry Reform Act (NIIRA) recently signed by President Bola Ahmed Tinubu. The NIIRA framework mandates stronger capital buffers and improved solvency across the insurance industry, prompting operators to adopt proactive capital strategies.
According to the company, the rights issue is expected to be concluded in the first quarter of 2026. Sovereign Trust Insurance has begun engagements with professional parties—including issuing houses, legal advisers and auditors—and is currently finalising regulatory approvals ahead of the official opening of the offer to shareholders.
At the company’s 30th Annual General Meeting on September 25, 2025, shareholders approved a raft of resolutions aimed at reinforcing its strategic and financial resilience. These included authorising a capital raise of up to N20 billion to boost the firm’s balance sheet, improve liquidity and expand underwriting capacity in line with enhanced NIIRA standards. Shareholders also approved a dividend of 5 kobo per share, underscoring confidence in the company’s performance and governance.
The company’s stock gained momentum on the Nigerian Exchange (NGX) following the AGM, emerging among the top gainers across several trading sessions in October 2025—an indication of rising investor confidence and strong operational fundamentals.
Managing Director and Chief Executive Officer, Mr. Olaotan Soyinka, expressed optimism about the new capital raise, reaffirming management’s ambition to position Sovereign Trust Insurance among Nigeria’s top five insurers. He encouraged shareholders to take advantage of the rights issue once it opens.
Soyinka noted that the company remains committed to innovation, digital transformation, market responsiveness and underwriting excellence—pillars he described as essential to sustaining long-term performance, improving customer experience and maintaining competitiveness in an evolving insurance landscape.
