Sovereign Trust Insurance gets board approval for N5bn rights issue.

By Sofiyyah Layole 

Sovereign Trust Insurance Plc has secured approval from its Board of Directors to raise N5 billion through a Rights Issue, marking the first phase of its recapitalization drive under the new Nigerian Insurance Industry Reform Act (NIIRA).  

The announcement, made in Lagos, comes after shareholders at the company’s 30th Annual General Meeting in September endorsed a broader capital raise of up to N20 billion to strengthen the balance sheet, improve liquidity, and expand underwriting capacity.  

Chairman of the Board, Mr. Abimbola Oguntunde, said the move reflects the company’s proactive stance in meeting the heightened capital requirements mandated by NIIRA. 

The Rights Issue is expected to be completed in the first quarter of 2026, subject to regulatory approvals.  

Managing Director/CEO, Mr. Olaotan Soyinka, urged shareholders to take advantage of the offer, stressing that the company is committed to innovation, digital transformation, and underwriting excellence. 

He noted that Sovereign Trust aims to rank among Nigeria’s top five insurers in the near term.  

The insurer’s stock has already enjoyed positive momentum on the Nigerian Exchange (NGX), emerging among the top gainers in October following shareholder approval of the recapitalisation plan and a dividend payout of 5 kobo per share.