Linkage Assurance Plc has informed shareholders and the Nigerian Exchange that it has secured approval from the Securities and Exchange Commission (SEC) to list 12.32 billion ordinary shares of 50 kobo each, through a Rights Issue exercise.
The shares, priced at N1.32 each, will be offered to existing shareholders on the basis of two new ordinary shares for every three units previously held as of 22 January 2026.
In a corporate filing on the Nigerian Exchange, the company stated that the rights offer will open on 11 March 2026 and close on 23 April 2026.
The company said the Rights Issue, worth N16.26 billion, will meet new minimum capital requirements introduced by the Nigerian Insurance Industry Reform Act, 2025, and support growth across key business segments.
What the company is saying
According to the company, shareholders can participate in the rights issue through the registrar’s online portal or by completing the participation form that will be made available by the registrar.
- Completed participation forms, alongside payment or proof of payment, must be submitted on or before 23 April 2026 to any issuing house or receiving agent listed in the rights circular.
- Linkage Assurance noted that the rights issue offers existing shareholders an opportunity to increase their equity holdings in the company, strengthening investor participation and support for its long-term growth plans.
Prior to the offer, the company had 18.47 billion ordinary shares listed on the Nigerian Exchange with a market capitalization of about N33.4 billion, a figure expected to rise to 30.79 billion ordinary shares after the new listing.
The move will help Linkage Assurance meet the N15 billion minimum capital requirement for non-life insurers, as mandated under the Nigerian Insurance Industry Reform Act, 2025.
Get up to speed
In August 2025, President Bola Ahmed Tinubu signed the Nigerian Insurance Industry Reform Act, 2025 into law to update regulations guiding the industry.
- Under the framework, non-life insurers must raise their capital from N3 billion to N15 billion, life insurers from N2 billion to N10 billion, and reinsurers from N10 billion to N35 billion.
It provides measures aimed at protecting policyholders, including stricter timelines for settling claims and the creation of funds to support policyholders if insurers become insolvent.
The framework further supports regional participation in schemes such as the ECOWAS Brown Card System and encourages wider access to insurance services through technology.
What you should know
The market is yet to react to the Rights Issue disclosure, as Linkage Assurance shares closed flat on the Nigerian Exchange following the announcement.
- However, the company’s shares are up more than 15% year-to-date on the Nigerian Exchange, with total traded volume exceeding 957 million shares.
- The stock is also up about 4.05% month-to-date in March, with possible market reaction expected in the coming trading sessions.
Linkage Assurance reported an unaudited pretax profit of N4.3 billion in 2025, down from N5.2 billion recorded in the previous year.
The company paid N5.9 billion in claims in 2025, up from N4.5 billion in 2024.
