Sovereign Trust Insurance Plc has concluded the structuring phase of its planned N5 billion Rights Issue, marking a major step forward in its recapitalisation programme aligned with the Nigerian Insurance Industry Reform Act (NIIRA).
The development was formally announced at the signing ceremony of all transaction parties held at the company’s corporate head office in Victoria Island, Lagos. The event signified the completion of key internal approvals, advisory engagements, and professional processes required to advance the capital raise.
With the structuring phase now finalized, shareholders will now be invited to participate in the Rights Issue, which offers a total of 2,510,848,144 ordinary shares of 50 kobo each at N2.00 per share, on the basis of three new ordinary shares for every existing holding.
Shareholders Urged to Maximise Opportunity
Management of the underwriting firm has urged shareholders to fully take up their rights, describing the offer as a strategic opportunity to strengthen their equity position in the company while benefiting from its projected growth trajectory.
The company noted that the recapitalisation exercise is not only regulatory-driven but also central to its long-term ambition of expanding market share and improving financial resilience in Nigeria’s evolving insurance landscape.
CEO Outlines Growth Ambition
Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, said the company has set an ambitious growth agenda aimed at positioning it among the top five insurance firms in Nigeria.
He emphasised that a strong capital base remains critical to achieving this objective.
“In achieving this aspiration, we have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company,” he stated.
Dr. Durojaiye added that Sovereign Trust Insurance is deliberately working towards becoming one of the most preferred insurance companies in Nigeria—both as an investment destination and as an employer of choice.
Positioning for a New Insurance Era
According to the company, the recapitalisation effort is part of a broader transformation strategy designed to strengthen competitiveness, improve underwriting capacity, and align with emerging regulatory expectations under NIIRA.
Management expressed confidence that with strong shareholder participation, the firm will be better positioned to scale operations, enhance service delivery, and deliver improved value in the years ahead.
According to the report Sovereign Trust Insurance Plc has completed the structuring of its N5 billion Rights Issue as part of its recapitalisation plan under NIIRA, urging shareholders to fully participate to support its expansion and top-five industry ambition.
The managing director revealed that the Sovereign Trust Insurance has concludes structuring of its N5bn Rights Issue, offering 2.5 billion shares at N2.00 each, as it pushes recapitalisation plans and urges shareholders to boost investment.
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