Universal Insurance Plc has announced plans to raise up to ₦15 billion from local or international capital markets as it seeks to comply with the National Insurance Commission’s (NAICOM) minimum capital requirement for non-life insurers.
In a disclosure filed with the Nigerian Exchange (NGX), the insurer said it will seek shareholder approval for the capital raise at an Extraordinary General Meeting scheduled for February 5, 2026, in Lagos.
According to the notice, the proposed fundraising could take the form of a public offer, private placement, rights issue, or a combination of these options, depending on market conditions and board discretion.
The company added that pricing would be determined through book-building or other valuation methods, with decisions on tranches, timelines, and maturities to be made after securing regulatory approvals.
Shareholder approvals at the centre of the plan
To facilitate the capital raise, shareholders will be asked to revalidate and authorize the issuance of 14 billion unissued ordinary shares. The board said the shares are intended solely for the fundraising exercise and are expected to be taken up by investors.
Should the existing unissued shares prove insufficient, Universal Insurance plans to increase its share capital by the exact number required and pass additional resolutions to issue new shares. Approval is also being sought to list and admit the new shares on the NGX or any other exchange deemed appropriate for the exercise.
Under NAICOM’s 2025 Insurance Industry Reform Act, non-life insurers are required to maintain a minimum capital base of ₦15 billion. Universal Insurance currently has 16 billion outstanding shares held by existing shareholders on the NGX, while its share capital stood at ₦8 billion as of its nine-month 2025 financial statements.
The company believes the planned listing of up to 14 billion shares could raise the targeted ₦15 billion and attract fresh investor interest, supported by its strong market performance in 2025.
Stock rallies despite early-year slump
Universal Insurance emerged as the sixth-best performing insurance stock on the NGX in 2025, delivering an 83.33% return as its share price climbed from ₦0.66 to ₦1.21. Trading volume for the year exceeded 6 billion shares.
The stock started the year on a weak footing, sliding to ₦0.64 in January and further to ₦0.52 by April. Despite brief rebounds in May and June, the shares were down 6% at mid-year.
Momentum picked up in the second half of the year, with renewed investor demand pushing the price from ₦0.78 in July to ₦1.20 by August. Although trading was volatile toward year-end, the stock closed 2025 at ₦1.21.
Analysts attribute the rally to improved company fundamentals and broader sector strength, with the NGX Insurance Index gaining 65.64% in 2025.
Profits rebound on strong revenue growth
Universal Insurance reported a nine-month pre-tax profit of ₦1.12 billion in 2025, a sharp increase from ₦232 million recorded in the corresponding period of 2024.
Insurance revenue rose to ₦14.6 billion from ₦9.8 billion year-on-year, while net investment income swung to a ₦2.7 billion gain from a loss of ₦645.6 million. Total assets grew 6.47% to ₦23.6 billion, and retained earnings returned to positive territory at ₦428.5 million, compared with a loss of ₦139.3 million previously.
Gross premiums received increased to ₦18 billion from ₦12 billion, while claims paid rose 68% to ₦2.6 billion.
Why it matters
The proposed capital raise could significantly strengthen Universal Insurance’s balance sheet, enhancing its underwriting capacity and supporting future expansion initiatives.
With recapitalisation pressures intensifying across Nigeria’s insurance industry, the company’s improved financial performance and strong stock-market showing may help it attract investors seeking exposure to the sector.
More broadly, the move underscores a growing trend among Nigerian insurers to secure long-term capital to boost market share, fund innovation, and accelerate digital transformation.
