Sovereign Trust Insurance Plc has secured board approval to raise an initial N5 billion through a rights issue as part of a broader N20 billion capital programme aimed at strengthening its balance sheet and meeting new regulatory capital requirements.
In a statement dated November 25, 2025, signed by its Head, Corporate Communications and Investor Relations, Segun Ankole, the company said the capital raise is in line with the Nigerian Insurance Industry Reform Act (NIIRA) recently signed into law by President Bola Ahmed Tinubu, which mandates stronger capital buffers and enhanced solvency across the insurance sector.
The board, chaired by Abimbola Oguntunde, also obtained shareholders’ approval at the company’s 30th Annual General Meeting on September 25, 2025, for a total capital raise of up to ₦20 billion, to be executed in phases. At the AGM, shareholders further endorsed the payment of a 5 kobo dividend per share.
According to the statement, Sovereign Trust Insurance has commenced structured engagements with issuing houses, legal advisers, auditors and other professional parties and is in the process of securing final regulatory approvals ahead of the formal opening of the offer. The rights issue is projected to be completed within the first quarter of 2026.
Market Opportunity
The company noted that the market has already reacted positively to its recent strategic moves, with Sovereign Trust Insurance among the top gainers on the Nigerian Exchange (NGX) over several trading sessions in October 2025 – a development it said reflects growing investor confidence in its financial discipline and long-term value creation strategy.
Managing Director/Chief Executive Officer, Olaotan Soyinka, reaffirmed management’s commitment to positioning Sovereign Trust Insurance among the top five insurers in Nigeria. He said the recapitalisation drive will support investments in innovation, digital transformation, customer experience and underwriting excellence, which he described as critical pillars for sustainable performance in a rapidly evolving insurance landscape.
Soyinka also urged shareholders to take up their rights in full when the offer opens, stressing that the strengthened capital base will expand the company’s underwriting capacity and improve its liquidity buffers in line with global best practice.
