No fewer than four insiders in Sovereign Trust Insurance Plc have raked in about N2.48 billion by selling the shares of the insurance company.
Sovereign Trust Insurance Plc notice of insider dealing shows that Oluseun Ajayi, former chairman of the board of directors and person with significant control on September 4 sold an aggregate of 500million units of the company’s shares at an average price of N2.98 per share. This share deal by Ajayi was valued at N1.49billion.
Sovereign Trust Insurance Plc has 14.228billion shares outstanding, each valued at N3.06 as at September 8. At the company’s forthcoming 30th Annual General Meeting (AGM) on Thursday, September 25, the board of directors will seek shareholders’ approval to among others undertake a capital raise of up to N20billion.
The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation.
Also, Ugochi Odemelam, an executive director of Sovereign Trust Insurance Plc on September 4 sold 80million units of the company’s shares at N2.95 per share. The share deal by Odemelam was valued at N236million.
Sovereign Trust Insurance Plc financial statements for the period ended June 30, 2025 show that its insurance revenue rose by 45 percent to N34.074billion from N23.565billion in H1’2024. The company’s profit after tax (PAT) of N1.357billion in H1’25 represents 44 percent increase from N941.621million in H1’24. In the half-year to June 2025, the company’s basic earnings per share increased by 42 percent to 10kobo from 7kobo in H1’24.
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The Nigerian Insurance Industry Reform Act (NIIRA) 2025 which was recently approved by President Bola Ahmed Tinubu introduces higher Minimum Capital Requirements (MCR) of N10 billion, N15 billion, N25 billion and N35 billion for life, non-life, composite and reinsurance companies respectively, and a shift to a Risk-Based Capital (RBC) framework for insurance and reinsurance companies in Nigeria.
Insurance companies in Nigeria have been given twelve calendar months ending July 2026 to comply with the new minimum capital requirement prescribed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The directive confirmed in a circular dated August 13, 2025 sent to all Insurance and Reinsurance Companies in Nigeria says the recapitalisation exercise commenced from July 31, 2025 date of enactment of the Act.
BusinessDay’s check also shows that on August, 14, 15, and 18, Tripple Tees Endowment Limited, a company related to a non-executive director of Sovereign Trust Insurance Plc sold 52.295 million units of the company’s shares at an average price of N3.22 per share.
Details of the deals valued at N168.4million show that 16,548,979 units were sold at N3.68 per share; 25,053,284 units at N2.92 per share; and 10,693,024 units at N3.21 per share.
In almost two decades, Nigerian insurance stocks had their biggest weekly gain last month after a new law was passed requiring companies to raise fresh capital and making insurance for property and other assets mandatory. Recent optimism around insurance stocks resulted from perceived positive impact of Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Last 7 Days Trades
The new Act — a landmark legislation that strengthens Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy – also provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.
Further check shows that on September 4, Abimbola Oguntunde, a non-executive director of Sovereign Trust Insurance Plc sold 200 million units of the company’s shares in deal worth N590million. Oguntunde sold the 200 million units at an average price of N2.95 per share.
In a move to support the implementation of the newly enacted Nigeria Insurance Industry Reform Act (NIIRA) 2025, the Securities and Exchange Commission (SEC) has offered nine key concessions aimed at easing the recapitalisation process for insurance companies.
Announced during the 19th meeting of the Insurers’ Committee held in Lagos, these concessions include a reduction in transaction fees from approximately 1 percent to 0.3 percent, the establishment of a dedicated SEC desk to fast-track approvals, and a 14-day approval benchmark after documentation, among others.
The initiative, part of a broader collaboration between SEC and the National Insurance Commission (NAICOM) is expected to accelerate regulatory compliance and drive long-term transformation in the insurance industry.
The company will also at its AGM seek shareholders approval to pay a dividend of 5 kobo per ordinary share, which is payable less withholding tax. If the recommendation is approved at the forthcoming 30th Annual General Meeting, the shareholders whose names appear in the Register of Members as at the close of business on September 5 will have their accounts credited immediately after the Annual General Meeting on 25th September 2025.