Sovereign Trust Insurance Plc has announced that its Board of Directors, chaired by Mr. Abimbola Oguntunde, has approved an initial capital raise of N5 billion through a Rights Issue.
The move represents the first phase of the Company’s broader recapitalisation agenda, designed to align with the Nigerian Insurance Industry Reform Act (NIIRA), recently signed into law by President Bola Ahmed Tinubu.
“Sovereign Trust Insurance Plc (the “Company”) notifies its shareholders and the investing public that its Board of Directors, chaired by Mr. Abimbola Oguntunde, has approved an initial capital raise of N5 billion through a Rights Issue,” the company said in a filing on the NGX.
The company is planning to raise N20 billion in fresh capital.
Strengthening capital buffers under NIIRA
The NIIRA framework mandates stronger capital buffers and enhanced solvency positions across the insurance sector. Sovereign Trust Insurance Plc said the Rights Issue underscores its proactive approach to capital planning in line with industry reforms.
A statement signed by Segun Bankole, Head of Corporate Communications & Investor Relations, confirmed that the Rights Issue is expected to be completed within the first quarter of 2026.
In line with global best practice, the Company has commenced structured engagements with issuing houses, legal advisers, and auditors. Regulatory approvals are currently being finalized ahead of the formal opening of the offer to shareholders.
Shareholder resolutions and market response
The statement says that at the Company’s 30th Annual General Meeting held on September 25, 2025, shareholders approved key resolutions to strengthen Sovereign Trust Insurance Plc’s 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 under the NIIRA regime.
“Shareholders also approved a dividend of 5 kobo per share, reflecting confidence in the Company’s financial discipline.”
The statement says the Nigerian Exchange (NGX) responded positively, with the Company’s stock ranking among the top gainers over several trading sessions in October 2025.
CEO reaffirms strategic vision
Commenting on the development, Managing Director/Chief Executive Officer, Mr. Olaotan Soyinka, reiterated management’s ambition to position Sovereign Trust Insurance Plc among the top five insurers in Nigeria.
“We are committed to operational efficiency, premium growth, and digital service delivery. Shareholders are encouraged to participate fully in the Rights Issue when it opens,” Soyinka said.
He emphasized that innovation, digital transformation, market agility, and underwriting excellence remain the Company’s strategic pillars.
“These pillars are critical for sustaining long-term performance, improving customer experience, and consolidating the Company’s position in a rapidly evolving insurance landscape,” he added.
What you should know
In September, Sovereign Trust Insurance had explained that the capital raise could be carried out through a mix of share issuance options, including public offers, private placements, or rights issues.
- These could take place either in Nigeria or international markets, with pricing to be determined through book-building or other valuation methods.
