Sovereign Trust Insurance Plc, has kick started its phased recapitalisation with Board approved rights issue of N5bn which the company tagged “strategic first step undertaken in alignment with the requirements of the Nigerian Insurance Industry Reform Act (NIIRA).”
The rights issue sourced from the cockpit of NIIRA mandates stronger capital buffers and enhanced solvency positions across the insurance sector, reinforcing the need for proactive capital planning by responsible operators; is projected to be completed within the first quarter of 2026. In line with global best practice, the company has commenced structured engagements with all appointed professional parties, including issuing houses, legal advisers and auditors, and is currently finalizing the necessary regulatory approvals prior to the formal opening of the offer to shareholders.
At the company’s 30th Annual General Meeting held on 25 September 2025; shareholders approved a set of key resolutions designed to strengthen Sovereign Trust Insurance Plc’s strategic and financial position. Chief among these was the endorsement of a capital raise of up to N20 billion to reinforce the balance sheet, improve liquidity buffers, and expand underwriting capacity in line with the heightened capital expectations introduced under the NIIRA regime. Shareholders also approved the payment of a 5 kobo dividend per share, affirming confidence in the Company’s financial discipline and commitment to sustained value creation. The market responded positively to these developments, with the Company’s stock emerging among the top gainers on the Nigerian Exchange (NGX) over several trading sessions in October 2025 – a clear indication of growing investor confidence and the strength of the Company’s operational fundamentals.
Commenting on this development, the Managing Director/Chief Executive Officer, Mr. Olaotan Soyinka, reiterated management’s resolve to position the company among the top five insurers in Nigeria – a target aligned with industry benchmarks for operational efficiency, premium growth, and digital service delivery. He encouraged shareholders to participate fully in the Rights Issue when it opens, noting that the company remains firmly committed to innovation, digital transformation, market agility, and underwriting excellence. According to him, these pillars are critical for sustaining long-term performance, improving customer experience and consolidating the company’s position in a rapidly evolving insurance landscape.
