SUNU Assurances Nigeria Plc is moving to raise ₦9.3 billion through a Rights Issue, positioning itself early to comply with new industry capital requirements and strengthen its growth prospects.
The insurer plans to issue 2.08 billion ordinary shares at ₦4.50 each, offering five new shares for every 14 held by shareholders as of February 12, 2026.
The capital raise comes as companies in the sector adjust to the ₦15 billion minimum capital requirement introduced under the Nigerian Insurance Industry Reform Act 2025, with compliance required by July 2026 by the National Insurance Commission.
Strengthening for Post-Reform Growth
Chairman Kyari Abba Bukar said the move is aimed at reinforcing the company’s financial strength and expanding its underwriting capacity.
“This is a growth initiative. We are positioning early to meet the new benchmark and enhance our capacity to underwrite larger and more complex risks,” he said.
Managing Director Samuel Ogbodu highlighted the firm’s performance record, noting that the insurer has consistently paid dividends over the last three to four years.
“We have maintained steady growth in premium income, profitability and governance standards over the past decade. Our shareholders have been rewarded, and we expect to continue delivering value,” Ogbodu said.
Ownership Structure Adjustment
The majority shareholder, SUNU Group, which holds about 83% equity, is also planning to reduce its stake to meet the free float requirements of the Nigerian Exchange Limited.
Although the parent company has the capacity to recapitalize the business on its own, the board decided to allow existing shareholders and new Nigerian investors to participate in the next growth phase.
Investor Confidence Boost
SUNU Assurances Nigeria Plc recently received the Highest Share Price Appreciation Award at the PEARL Awards—a recognition analysts say strengthens investor confidence ahead of the capital raise.
Industry watchers view the insurer’s early recapitalization move as a strategic positioning effort rather than financial pressure, as companies race to align with the sector’s new regulatory framework.
Further details of the rights issue and its timeline are expected once regulatory approvals are finalized.
