SUNU Assurances Nigeria Plc has obtained unanimous shareholder approval to initiate a strategic N9 billion recapitalisation programme to comply with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The decision was reached at the company’s Extraordinary General Meeting (EGM) held in Lagos, where shareholders endorsed resolutions empowering the Board to explore a mix of fundraising options, including rights issues, public offers, private placements and strategic investor participation.
The Board also received the mandate to restructure the company’s share capital, engage professional advisers, and list newly issued shares on the Nigerian Exchange (NGX) to enhance liquidity and governance.
SUNU Chairman, Kyari Abba Bukar, stated that the recapitalisation initiative was imperative to meet the revised Minimum Capital Requirement (MCR) for non-life insurers, recently increased by NIIRA 2025 from N3 billion to N15 billion. He disclosed that the company requires N9 billion as of September 30, 2025, to bridge its capital deficit before the July 30, 2026, compliance deadline.
Board signals urgency, opens door to strategic investors
Bukar emphasised that the exercise was not only regulatory-driven but also central to supporting the company’s growth trajectory.
“The recapitalisation is critical to ensuring solvency, supporting underwriting expansion and maintaining competitive strength in the post-reform landscape,” he said.
He added that the company is simultaneously working to address its free-float deficiency on the NGX as part of broader efforts to optimise corporate governance and operational transparency.
Speaking with journalists after the EGM, Bukar stressed that the company would pursue every approved capital mobilisation avenue to ensure timely compliance.
“We are committed to compliance and will explore rights issue, public offer, private placement or strategic investor participation to meet the NAICOM deadline,” he explained.
Major shareholder to dilute 13% stake to boost market float
Managing Director/CEO, Samuel Ogbodu, revealed that the SUNU Group intends to reduce its current 83% shareholding to about 70% to deepen domestic investor participation and enhance public float.
Describing the EGM as a corporate governance requirement for listed companies, Ogbodu said SUNU remains a “compelling investment proposition,” citing its long-term operational performance and growth outlook. He noted that the company’s share price, currently trading between N4.70 and N5.70 after peaking earlier at N11, is poised for a strong rebound in the coming months on the back of the recapitalisation drive.
SUNU reaffirms multi-market commitment
Executive Director, Elie Ogounigni, reaffirmed the commitment of the parent company to SUNU Nigeria’s capital rebuilding process. “SUNU has a long-term footprint across 17 countries. Our commitment to Nigeria is strong, and we are prepared to provide the support required to ensure full recapitalisation and regulatory compliance,” he said.
With this approval, the company begins a critical phase that may determine its future competitiveness under NIIRA 2025, as the insurance sector enters a new era of capital consolidation and regulatory sophistication.
