Sovereign Trust Insurance Plc has said it has met the capital requirement prescribed by the National Insurance Commission (NAICOM) following the successful completion of a rights issue that raised more than N6.6 billion.
The insurer disclosed this in an update issued on Monday, August 3, 2026, following a publication by NAICOM on the status of the ongoing recapitalisation exercise in Nigeria’s insurance industry.
According to Sovereign Trust Insurance, it had satisfied the recapitalisation deadline as of July 31, 2026, but remains subject to the final verification process being conducted by NAICOM in conjunction with Ernst & Young.
The company sought to reassure shareholders, customers and other stakeholders that its inclusion among insurers undergoing final verification should not be interpreted as a failure to meet the new capital threshold.
It explained that the outstanding process is administrative and expects to receive final clearance after regulators complete their assessment.
Sovereign Trust Insurance said its financial position had strengthened considerably following capital-raising initiatives undertaken in preparation for the industry’s new regulatory framework.
The insurer reported N10.89 billion in admissible assets above admissible liabilities as of December 31, 2025.
It also disclosed that its rights issue, which closed on June 10, 2026, generated more than N6.6 billion after receiving approval from the Securities and Exchange Commission (SEC).
According to the company, proceeds from the exercise have taken its capital position above the minimum requirement stipulated under the Nigerian Insurance Industry Reform Act.
Sovereign Trust Insurance added that total shareholders’ equity now exceeds N22 billion, strengthening its financial capacity as the insurance industry transitions to the new capital regime.
The company described the final regulatory verification as a standard part of the recapitalisation process, noting that it is one of eight insurers whose capital positions are undergoing final assessment.
Managing Director and Chief Executive Officer, Dr. Lucas Durojaiye, said the company’s financial restructuring and capital mobilisation efforts were undertaken to ensure compliance with NAICOM’s requirements and prepare the business for the next phase of growth in Nigeria’s insurance industry.
The insurer said it expects to provide another update once NAICOM completes the verification process and issues its final clearance certificate.
The development comes as Nigerian insurance companies strengthen their balance sheets and raise fresh capital to comply with the industry’s new regulatory requirements, a process expected to reshape competition and financial capacity across the sector.