Sovereign Trust Insurance Plc (STI) has successfully remitted the mandatory statutory deposit of N1.5 billion to the Central Bank of Nigeria (CBN), achieving a key regulatory milestone under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The company confirmed that the deposit was made ahead of the May 31, 2026 deadline stipulated by the National Insurance Commission (NAICOM) for non-life insurance operators, reinforcing its commitment to regulatory compliance and financial stability.
According to the insurer, the successful remittance represents a significant step in its ongoing recapitalisation programme and demonstrates its determination to maintain a strong financial foundation while enhancing policyholder protection and stakeholder confidence.
Sovereign Trust Insurance stated that the N1.5 billion statutory deposit, which represents 10 per cent of the minimum capital requirement for non-life insurers under the NIIRA 2025, was paid in full before the regulatory deadline.
Commenting on the development, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, described the achievement as an important milestone in the company’s growth trajectory.
“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.»
He noted that the accomplishment would further strengthen stakeholder confidence in the company’s ability to consistently meet its obligations and deliver sustainable value.
“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. As an organization, we remain focused on building a stronger and more resilient institution, improving our service delivery capabilities, expanding our market reach, and contributing meaningfully to the development of the Nigerian Insurance Industry,” he added.
Rights Issue Remains Open
The latest milestone comes as Sovereign Trust Insurance continues its N5.02 billion rights issue aimed at further strengthening its capital base. The offer consists of 2.51 billion ordinary shares priced at N2.00 per share on the basis of three new shares for every 17 shares held by existing shareholders.
The rights issue, which forms part of the company’s broader recapitalisation strategy, is scheduled to close on June 10, 2026.
Industry Recapitalisation Drive
The Nigerian Insurance Industry Reform Act 2025 introduced new capital requirements for insurance operators as part of efforts to strengthen the sector, improve resilience, enhance policyholder protection, and position insurers to underwrite larger risks.
Under the new framework, non-life insurance companies are required to maintain a minimum capital base of N15 billion, while statutory deposits with the CBN account for 10 per cent of the required capital threshold.
By meeting the statutory deposit requirement ahead of schedule, Sovereign Trust Insurance has positioned itself among insurers proactively aligning with the industry’s ongoing recapitalisation programme and evolving regulatory standards.
About Sovereign Trust Insurance Plc
Founded in 1995, Sovereign Trust Insurance Plc is a publicly listed Nigerian insurance company offering a broad range of non-life insurance products and services. The company remains focused on innovation, operational excellence, regulatory compliance, and long-term value creation for shareholders and other stakeholders.
