Linkage Assurance Plc has disclosed plans to raise N16 billion in new capital as part of efforts to strengthen its balance sheet and position the company for growth.
In a filing with the Nigerian Exchange, the insurer disclosed that its board has been authorised to source additional funds through a mix of equity options, including private placement, rights issue, public offer, or a combination of these, subject to prevailing market conditions and regulatory approvals.
“The Board of Directors of the Company be and is hereby authorized to raise additional N16,000,000,000 (Sixteen Billion Naira) capital or such other amount as it may determine by way of either Private Placement, Rights Issue, Public Offer or a combination, on such terms and conditions, including price, and on dates and time as may be determined by the Board of Directors of the Company, subject to obtaining all relevant regulatory approval,” the statement signed by Company Secretary, Moses Omorogbe, read.
Share capital expansion
As part of the capital raise, Linkage Assurance will also increase its authorised share capital to accommodate the new issuance.
The company confirmed that the new shares will rank equally with existing ordinary shares and will be registered with the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Nigerian Exchange (NGX).
“The Memorandum and Articles of Association of the Company be amended accordingly to reflect the Company’s new share capital structure and any applicable amendments in line with the Companies and Allied Matters Act (CAMA 2020) thereto,” the filing stated.
Linkage Assurance board empowered
The board has been empowered to appoint professional advisers and execute all necessary documents to implement the capital raise. It is also authorised to finalise and sign all required agreements, meet regulatory requirements, and carry out additional actions to give full effect to the resolutions.
Linkage Assurance further confirmed that all prior actions taken by the board or management in relation to the capital-raising process have been approved and ratified, ensuring continuity and compliance in the execution of the plan.
What you should know
In its financial results for the first quarter ended 31 March 2025, Linkage Assurance reported a pre-tax profit of N829.5 million—up 7.83% from the N769.3 million recorded in the same period of 2024.
The rise in earnings was supported by higher insurance revenue, which reached N6.05 billion—an 18.2% increase from N5.1 billion a year earlier.
Most of the revenue came from the oil and gas segment, contributing N7.5 billion, followed by motor and fire insurance at N5.07 billion and N3.7 billion respectively, with other business lines accounting for the remainder.