Five Nigerian insurance companies have announced plans to raise approximately N75 billion in fresh capital as part of efforts to meet the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, The PUNCH reports. The insurers, which include SUNU Assurances, Sovereign Trust Insurance, Linkage Assurance, Guinea Insurance, and Veritas Kapital Insurance, have largely received board approvals and are now seeking shareholders’ consent to proceed with the capital-raising exercises.
According to their filings with the Nigerian Exchange Limited, these insurers intend to pursue a combination of rights issues, public offers, and private placements to meet the mandated thresholds. The National Insurance Commission (NAICOM) has also indicated that some boards have approved mergers as part of their recapitalisation strategies.
The NIIRA 2025 stipulates higher capital requirements for insurance operators in Nigeria. Non-life insurers must now maintain a minimum capital base of N15 billion, life insurers are required to hold at least N10 billion, while reinsurance firms must reach a threshold of N35 billion. The new regulations are designed to strengthen the solvency and operational resilience of the sector.
Guinea Insurance recently announced that it would convene an Extraordinary General Meeting (EGM) to seek shareholder approval to raise up to N15 billion in additional capital. The resolutions include increasing its minimum issued share capital from N4 billion to N19 billion, with the proposed capital raise to be executed via a rights issue and private placement, subject to board discretion on pricing and allotment structure.
Sovereign Trust Insurance has received shareholder approval to raise up to N20 billion in fresh capital, beginning with a N5 billion rights issue expected to conclude in the first quarter of 2026. The company described this as the initial phase of a phased recapitalisation plan aligned with NIIRA 2025 requirements, aimed at strengthening capital buffers and improving solvency positions.
SUNU Assurances shareholders have approved raising N9 billion to meet the new minimum capital requirement for non-life insurers. The board has been empowered to implement the capital increase through rights issues, private placements, public offers, or a combination of methods, subject to regulatory approval. The company may also allot new shares, trade untaken rights, and register all changes with the Corporate Affairs Commission.
Linkage Assurance, during an EGM, secured approval to raise an additional N16 billion via private placement, rights issue, public offer, or a combination thereof, while Veritas Kapital Insurance received shareholder consent to raise N15 billion through a private placement. Lasaco Assurance has announced plans to raise N11.1 billion via private placement, and Regency Alliance has also obtained shareholder approval to raise capital through various mechanisms.
These recapitalisation efforts reflect the proactive measures by insurance operators to align with NIIRA 2025, ensuring stronger capital bases, enhanced financial stability, and compliance with regulatory mandates ahead of the 2026 deadline. The moves are expected to improve sectoral confidence, protect policyholders, and foster sustainable growth within Nigeria’s insurance industry.
