Kayode Tokede Listed insurance companies have stepped up efforts to strengthen their capital base ahead of the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with eight insurers on the Nigerian Exchange Limited (NGX) seeking to raise an estimated N78.66 billion through various capital-raising programmes. The companies include: Lasaco Assurance Plc, International Energy Insurance Plc, Linkage Assurance Plc, Guinea Insurance Plc, Universal Insurance Plc, Sunu Assurances Nigeria Plc, Sovereign Trust Insurance Plc and Regency Alliance Insurance Plc. Industry sources told THISDAY that while some of the insurers had successfully concluded their capital raising programmes, others had secured shareholders’ approval and regulatory clearances to proceed with their respective exercises. THISDAY also gathered that the firms are deploying different funding options, including rights issues, public offers, private placements, special placements and fresh equity injections by existing shareholders, as they position themselves to meet the new statutory capital requirements introduced under the industry reform law. Investigations have shown that Lasaco Assurance has so far emerged as the largest fundraiser among the listed insurers. The company recently concluded a rights issue that recorded an impressive subscription level, raising N19.30 billion, and exceeding its target of N18.47 billion by about 4.5 per cent. The successful exercise followed approval by the Nigerian Exchange for the listing of 9.24 billion ordinary shares of 50 kobo each at N2.00 per share, offered on a five-for-six basis, with five new ordinary shares for every six existing ordinary shares held by shareholders. Commenting on the outcome, the Managing Director and Chief Executive Officer of Lasaco Assurance, Mr. Ademoye Shobo, described the successful capital raising as a strong vote of confidence in the company’s long-term strategy. He said: “Our recapitalisation journey reflects our unwavering commitment to transparency, accountability and responsible corporate governance. “The overwhelming support from our shareholders and the successful completion of key regulatory milestones further validate the confidence reposed in our company. “We remain focused on concluding the remaining phases of the exercise and positioning Lasaco Assurance for sustained growth, enhanced competitiveness and greater value creation for all our stakeholders.” Trailing Lasaco Assurance is International Energy Insurance Plc, which is raising about N17.50 billion through a public offer, while Linkage Assurance Plc is seeking N16.26 billion via a rights issue. Linkage Assurance’s offer comprises 12.32 billion ordinary shares of 50 kobo each at N1.32 per share, based on two new ordinary shares for every three existing shares held by shareholders. Guinea Insurance Plc has also commenced its recapitalisation programme, targeting N5.82 billion through a rights issue to strengthen its capital base and enhance its underwriting capacity. The company is offering 5.30 billion ordinary shares of 50 kobo each at N1.10 per share, pre-allotted to shareholders in the ratio of two new shares for every three shares held as of the qualification date. Similarly, Universal Insurance Plc, which had earlier secured shareholders’ approval to raise to N15 billion, has commenced the first phase of the exercise with a N3.20 billion rights issue. The company plans to issue 2.67 billion ordinary shares of 50 kobo each at N1.20 per share, with shareholders entitled to one new share for every six shares held as of the qualification date. Apart from the rights issue, Universal Insurance also received shareholders’ approval to raise additional capital through public offers and private placements where necessary. Meanwhile, Sunu Assurances Nigeria Plc, Sovereign Trust Insurance Plc and Regency Alliance Insurance Plc are seeking to raise N9.34 billion, N5.02 billion and N3.04 billion, respectively, through a combination of equity and debt instruments. The capital raising programmes may involve ordinary shares, preference shares, bonds, debentures, subordinated instruments, convertible securities, mezzanine financing, rights issues, private placements, public offers or other financing structures permitted under existing laws and regulations. The renewed drive to shore up capital follows the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which significantly raised the minimum capital requirements for operators across the insurance value chain. Under the new law, the minimum capital requirement for life insurance companies was increased from N2 billion to N10 billion. Non-life insurance firms are also required to mainta
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