Sovereign Trust Insurance Plc has announced the successful remittance of a N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN), in compliance with regulatory requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
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The disclosure was contained in a statement issued by the company’s Deputy General Manager and Head of Corporate Communications and Investor Relations, Mr. Olusegun Bankole.
According to the company, the deposit fulfils a directive by the National Insurance Commission (NAICOM) requiring all insurance operators to lodge 10% of their regulatory minimum capital with the CBN as part of ongoing reforms aimed at strengthening the insurance sector.
As a non-life insurance company, Sovereign Trust Insurance was required to deposit N1.5 billion and complete the remittance ahead of the May 31, 2026 deadline.
What they are saying
Commenting on the development, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, described the successful remittance as a major milestone in the company’s growth and recapitalisation journey.
- “The fulfilment of the statutory N1.5 billion deposit requirement with the Central Bank of Nigeria represents another important milestone in our growth journey and demonstrates our unwavering commitment to regulatory compliance and financial solvency in competing favourably in the Nigerian insurance space and beyond,” Durojaiye said.
According to him, the achievement reinforces stakeholder confidence in the company’s financial strength and long-term sustainability.
- “This achievement further strengthens the confidence of our shareholders, policyholders, business partners, and other stakeholders in the company’s ability to consistently meet its obligations while creating sustainable value for all,” he added.
Durojaiye noted that the insurer remains focused on strengthening its capital base, improving operational efficiency, expanding market reach, driving innovation, and delivering enhanced insurance solutions to customers nationwide.
He also reaffirmed the company’s commitment to meeting all regulatory obligations while maintaining high standards of corporate governance, professionalism, prompt claims settlement, and customer service.
The company said the successful remittance represents a significant step in its ongoing recapitalisation programme and underscores its readiness to align with regulatory initiatives aimed at improving the resilience and competitiveness of insurance operators in Nigeria.
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As part of its capital-raising strategy, Sovereign Trust Insurance recently launched a rights issue to existing shareholders to raise approximately N5 billion.
The offer, which opened on May 4, 2026, involves the issuance of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share on the basis of three new shares for every 17 shares held as of March 17, 2026.
The rights issue is scheduled to close on June 10, 2026.
The company said the additional capital will support its growth ambitions and further strengthen its financial position amid evolving regulatory requirements.
What you should know
Sovereign Trust Insurance reported a profit before tax of N1.02 billion for the financial year ended December 31, 2025, according to its latest unaudited results filed with the Nigerian Exchange.
Although the insurer remained profitable, earnings declined from N2.64 billion recorded in 2024 as rising operating costs weighed on performance.
Insurance revenue increased to N44.6 billion during the period, up from N40.4 billion in the previous year, supported by growth in gross premiums written, which rose nearly 10% to N46.2 billion.
However, insurance service expenses of N21.9 billion and reinsurance costs of N18.5 billion impacted profitability, resulting in an insurance service result of N4.1 billion, compared to N6.6 billion recorded in 2024.
The company said its ongoing recapitalisation initiatives are expected to strengthen its financial capacity and position it for sustainable long-term growth within Nigeria’s evolving insurance landscape.
