Sovereign Trust Insurance Plc has announced the successful remittance of its N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN), in compliance with regulatory requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The disclosure was made in a statement issued by the company’s Deputy General Manager and Head of Corporate Communications and Investor Relations, Olusegun Bankole.

According to the company, the remittance fulfils a directive by the National Insurance Commission (NAICOM), which requires all insurance operators to deposit 10 per cent of their regulatory minimum capital with the CBN as part of ongoing reforms aimed at strengthening the Nigerian insurance industry.

As a non-life insurance company, Sovereign Trust Insurance was required to remit N1.5 billion and completed the payment ahead of the May 31, 2026 deadline set by the regulator.

Commenting on the development, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, described the successful remittance as a significant milestone in the company’s recapitalisation and growth journey.

He said the fulfilment of the statutory deposit requirement demonstrates the insurer’s commitment to regulatory compliance, financial solvency and long-term sustainability.

According to Durojaiye, the achievement reinforces confidence among shareholders, policyholders, business partners and other stakeholders in the company’s capacity to meet its obligations while creating sustainable value.

“The fulfilment of the statutory N1.5 billion deposit requirement with the Central Bank of Nigeria represents another important milestone in our growth journey and demonstrates our unwavering commitment to regulatory compliance and financial solvency in competing favourably in the Nigerian insurance space and beyond,” he said.

He added that the company remains focused on strengthening its capital base, enhancing operational efficiency, expanding market penetration, driving innovation and delivering improved insurance solutions to customers across the country.

Durojaiye also reaffirmed the insurer’s commitment to maintaining high standards of corporate governance, professionalism, prompt claims settlement and customer service while meeting all regulatory obligations.

The company noted that the successful remittance forms part of its broader recapitalisation programme and reflects its readiness to align with regulatory initiatives designed to improve the resilience, stability and competitiveness of insurance operators in Nigeria.

As part of its capital-raising efforts, Sovereign Trust Insurance recently launched a rights issue aimed at raising approximately N5 billion from existing shareholders.

The offer, which opened on May 4, 2026, involves the issuance of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share on the basis of three new shares for every 17 shares held as of March 17, 2026.

The rights issue is expected to close on June 10, 2026, with the proceeds earmarked to support the company’s growth strategy and strengthen its financial position amid evolving regulatory requirements.

Meanwhile, the insurer reported a profit before tax of N1.02 billion for the financial year ended December 31, 2025, according to its latest unaudited financial results filed with the Nigerian Exchange.

Although the company remained profitable, earnings declined from N2.64 billion recorded in 2024, largely due to rising operating expenses.

Insurance revenue rose to N44.6 billion during the period, compared with N40.4 billion in the previous year, supported by a nearly 10 per cent increase in gross premiums written, which grew to N46.2 billion.

However, insurance service expenses of N21.9 billion and reinsurance costs of N18.5 billion weighed on profitability, resulting in an insurance service result of N4.1 billion, down from N6.6 billion reported in 2024.

The company expressed confidence that its ongoing recapitalisation initiatives would enhance its financial strength and position it for sustainable long-term growth within Nigeria’s evolving insurance landscape.