Sovereign Trust Insurance Plc has secured board approval to raise ₦5 billion through a Rights Issue as part of a wider capital-strengthening programme designed to reinforce its balance sheet and align with the newly introduced Nigerian Insurance Industry Reform Act (NIIRA).
According to the company, the Rights Issue represents the first phase of a broader capital-raising plan of up to ₦20 billion, targeted at improving solvency, expanding underwriting capacity, and enhancing liquidity buffers in response to evolving regulatory and market conditions.
The approval was granted at the company’s 30th Annual General Meeting, where shareholders voted in support of the capital-raise mandate and a 5-kobo dividend per share, reaffirming confidence in the insurer’s financial discipline and long-term strategy.
Regulatory Compliance and Offer Timeline
Sovereign Trust Insurance Plc disclosed that it has commenced engagements with professional parties — including issuing houses, legal advisers, auditors, and other transaction partners — to finalize all regulatory filings required for the Rights Issue.
The company expects the Rights Issue process to be completed within the first quarter of 2026, subject to final approval from the National Insurance Commission (NAICOM) and other relevant authorities.
Management stated that the capital-raise programme is fully aligned with the NIIRA framework signed into law by President Bola Ahmed Tinubu, GCFR.
The new regulatory regime mandates higher capital thresholds and enhanced solvency positions across the insurance industry.
Market Response and Investor Confidence
The announcement follows a period of strong market activity for Sovereign Trust Insurance Plc. The company’s stock recorded multiple sessions of positive price movement on the Nigerian Exchange in October 2025, reflecting heightened investor interest and sustained value creation.
Stakeholders have cited the capital-raise plan as a clear indication of management’s commitment to building long-term resilience and strengthening the company’s operational fundamentals.
Management Outlook
Managing Director/Chief Executive Officer, Mr. Olaotan Soyinka, said management is determined to reposition the company for stronger competitiveness.
According to him, the new capital injection will enable the company to accelerate strategic growth plans and advance its long-term ambition of positioning Sovereign Trust Insurance Plc among the top five insurers in Nigeria.
He encouraged shareholders to take full advantage of the Rights Issue when the offer opens, noting that the additional capital will deepen operational efficiency and support the company’s strategic objectives.