Universal Insurance Plc is seeking shareholder approval to raise up to N15 billion through the Nigerian or international markets to meet NAICOM’s minimum capital requirements for non-life insurers.
In a notice filed with the Nigerian Exchange, the company said the proposal will be presented to shareholders at an Extraordinary General Meeting scheduled for 5th February 2026 in Lagos.
The disclosure shows that the capital raise could take the form of a public offering, private placement, rights issue, or a mix of methods the board considers most effective to achieve the target.
Pricing will be determined through book building or other valuation methods, with the board deciding on tranches, timelines, and maturities once regulatory approvals are obtained.
What the disclosure is saying
To enable the raise, shareholders will be asked to approve an agenda to revalidate, authorize, and regularize 14,000,000,000 unissued ordinary shares of the company.
The board explained that these shares are intended for the planned capital-raising exercise and are expected to be taken up by investors.
- If the unissued shares are insufficient, the board would increase the share capital by the exact number of additional shares required and pass resolutions to issue any new shares necessary for the exercise.
Approval is also being sought to list and admit the shares for trading on the Nigerian Exchange (NGX) or any other exchange that would support the capital raise.
- Under NAICOM’s 2025 Insurance Industry Reform Act, non-life insurers must hold a minimum capital of N15 billion.
- Currently, the company has 16,000,000,000 units held by existing shareholders on the Nigerian Exchange.
- According to its nine-month 2025 financials, the company’s share capital stands at N8 billion.
The listing of 14,000,000,000 shares, which could raise up to N15 billion in capital, is expected to attract investors following the company’s strong 2025 performance on the NGX.
More on Universal’s 2025 performance
Universal Insurance was the sixth-best performing insurance stock on the NGX in 2025, delivering an 83.33% return as its shares rose from N0.66 to N1.21, with trading volume exceeding 6 billion shares.
The year began on a weak note for Universal Insurance, with its stock falling to N0.64 in January and dipping further to N0.52 by April, leaving it down 6% at mid-year despite brief rebounds in May and June.
However, momentum improved in the second half, as renewed buying lifted the price from N0.78 in July to N1.20 by August. Despite some choppy trading toward year-end, the stock closed 2025 at N1.21.
Universal Insurance’s 2025 gains were likely driven by investor reaction to positive financials and broader sector strength, as the NGX insurance index rose 65.64%.”
Strong financials
Universal Insurance reported a nine-month pre-tax profit of N1.12 billion in 2025, up sharply from N232 million in the same period of 2024, driven by strong revenue growth.
- Insurance revenue rose to N14.6 billion from N9.8 billion year-on-year, while net investment income rebounded to a gain of N2.7 billion from a loss of N645.6 million.
On the balance sheet, total assets increased 6.47% to N23.6 billion, and retained earnings returned to positive territory at N428.5 million from a loss of N139.3 million.
Received premiums climbed to N18 billion from N12 billion, while claims paid rose 68% to N2.6 billion.
Why this matters
The capital raise could strengthen Universal Insurance’s balance sheet, enabling higher underwriting capacity and funding expansion plans.
Strong 2025 performance positions the company to attract investor interest, especially as recapitalisation pressures increase across the sector.
The move also reflects a broader trend among Nigerian insurers seeking long-term capital to expand market share and support innovation and digital transformation.
