NAICOM Recapitalisation Update: Five Insurers Target N75bn Through Rights Issues, Private Placements

Nigeria’s insurance recapitalisation drive has gathered fresh momentum as five underwriting firms announce plans to raise a combined N75bn in additional capital to meet the new minimum capital requirement mandated by the National Insurance Commission (NAICOM).

Corporate filings on the Nigerian Exchange Limited (NGX) reveal that SUNU Assurances Plc, Sovereign Trust Insurance Plc, Linkage Assurance Plc, Guinea Insurance Plc, and Veritas Kapital Assurance Plc have all secured the approval of their respective boards to embark on major capital-raising programmes. The companies are now seeking final consent from shareholders to launch the offerings.

According to details in the filings, the insurers intend to raise their capital through a mixture of rights issues, public offers, and private placements, as they race to meet the regulatory deadline. The move underscores growing urgency across the sector as operators position themselves to avoid regulatory shortfalls and improve their financial robustness.

NAICOM, which is leading the recapitalisation agenda, has also confirmed that some boards across the industry have approved potential mergers, signalling that a wave of consolidation may accompany the capital-raising phase.

Industry analysts say the N75bn capital push reflects a strategic effort to bolster underwriting capacity, enhance claims-paying ability, and reposition the sector for stronger market penetration. Many expect heightened investor activity in coming months as insurance stocks take the spotlight in anticipation of the recapitalisation outcomes.

With shareholders’ meetings expected soon, the success of the fundraising efforts will largely determine which insurers emerge stronger and better aligned with NAICOM’s long-term vision of a more stable and competitive insurance industry that can support Nigeria’s broader economic reforms.

Five Nigerian insurers — SUNU Assurances, Sovereign Trust Insurance, Linkage Assurance, Guinea Insurance and Veritas Kapital — plan to raise N75bn through rights issues, public offers and private placements to meet NAICOM’s new recapitalisation requirements.