Sovereign Trust Insurance Plc says it will ask shareholders to approve plans to raise N20 billion in fresh capital at its Annual General Meeting (AGM) slated for September 25, 2025.
In a notice filed with the Nigerian Exchange, the company 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.
Another special business requiring shareholder approval is the proposed remuneration of Non-Executive Directors for the 2025 financial year, set at N10.5 million.
In addition, the AGM agenda will cover the presentation of the 2024 audited financial statements, alongside the reports of the Directors, Auditors, and Audit Committee.
Shareholders will also be asked to approve the re-election of directors, as well as the remuneration of managers and auditors.
A dividend already recommended by the board now awaits shareholder approval, with payment expected immediately after the AGM.
Performance:
The Board of Directors recommended a dividend of N0.05 per share (5 kobo on every ordinary share of 50 kobo), subject to withholding tax.
If approved at the forthcoming 30th Annual General Meeting (AGM), shareholders whose names appear in the Register of Members as of the close of business on September 5, 2025, will qualify for payment.
This recommendation follows a pretax profit of N1.5 billion for the period ended June 30, 2025, compared to N1.1 billion reported in the same period last year.
- The profit growth was driven by strong top-line performance, with insurance revenue rising to N34 billion, up 44.6% year-on-year.
After accounting for service and reinsurance expenses, the company posted an insurance service result of N2.6 billion, up from N2.2 billion a year earlier.
Investment income contributed N1.05 billion, compared to N1.02 billion in the prior period, further supporting the pretax profit of N1.5 billion after operating expenses and finance costs were factored in.
On the balance sheet, total assets grew to N28.2 billion from N27.9 billion, while retained earnings increased to N2.2 billion compared with N1.8 billion last year.
In the Nigerian stock market, Sovereign Trust has mirrored the bullish momentum in the insurance sector, delivering a strong 154% year-to-date performance in 2025.
Market trend
- Sovereign Trust Insurance shares, traded under the ticker SOVRENINS, opened in 2025 at N1.12.
- The stock slipped to N1.00 in January and dipped further to N0.98 in the first quarter. However, a turnaround began in May and gathered momentum in June.
- The third quarter was its strongest phase yet, with the stock surging over 112% on a market volume of 710 million shares.
- Year-to-date, the share price is up more than 154%, likely driven by strong investor sentiment toward insurance stocks and the company’s solid fundamentals.
