An underwriting firm, SUNU Assurances Nigeria Plc has unveiled plans to raise about N9.3 billion through a rights issue as the insurer moves to strengthen its capital base and comply with the new minimum capital requirement introduced by the National Insurance Commission (NAICOM) under the industry’s post-reform regulatory framework.

The non-life insurer said the capital raise will involve the issuance of 2,075,285,714 ordinary shares of 50 kobo each to existing shareholders in the ratio of five new shares for every 14 ordinary shares held as of February 12, 2026, at an offer price of N4.50 per share.

The planned rights issue follows approvals by the board and shareholders of the company and forms part of efforts to meet the N15 billion minimum capital requirement stipulated under the new insurance reform regime with a compliance deadline of July 2026.
Chairman of the company, Kyari Abba Bukar, described the move as a strategic initiative aimed at strengthening the company’s financial capacity and positioning it for growth under the evolving regulatory landscape.

According to him, the capital injection will enhance the firm’s solvency margin and improve its ability to underwrite larger and more complex risks in Nigeria’s expanding insurance market.

“This is a growth initiative. We are positioning early to meet the new benchmark and enhance our capacity to underwrite larger and more complex risks,” he said.

Also speaking, the Managing Director and Chief Executive Officer, Samuel Ogbodu, highlighted the company’s strong financial performance and commitment to shareholder value, noting that the insurer has maintained consistent dividend payments over the past three to four years.

He added that the company has recorded steady growth in premium income, profitability and corporate governance over the last decade, reinforcing investor confidence in its long-term strategy.

“We have maintained steady growth in premium income, profitability and governance standards over the last decade. Our shareholders have been rewarded, and we project continuity in value delivery,” Ogbodu said.

The company disclosed that its majority shareholder, SUNU Group, which currently holds about 83 per cent equity stake, plans to reduce its shareholding as part of efforts to comply with the free float requirements of the Nigerian Exchange Limited (NGX).

The restructuring of the ownership structure, according to the firm, aligns with the group’s long-term growth strategy and its commitment to deepening local participation in the company’s shareholding.

Although the parent company has the financial capacity to fully recapitalise the Nigerian subsidiary, the board said it opted to give existing shareholders and new Nigerian investors the opportunity to participate in the next phase of the company’s expansion.

Industry analysts say the move reflects a broader trend among insurers seeking to shore up capital ahead of the regulatory deadline, with several firms exploring rights issues, mergers and strategic investments to meet the new threshold.

The recapitalisation exercise, widely regarded as one of the most significant reforms in Nigeria’s insurance sector in over a decade, is expected to strengthen the financial capacity of insurers, improve claims settlement and enable the industry to support large-scale risks across key sectors of the economy.

SUNU’s market positioning has also received investor recognition, with the company recently receiving the Highest Share Price Appreciation Award at the PEARL Awards, an achievement analysts say could bolster investor appetite for the proposed capital raise.

Market watchers note that the insurer’s early move to raise fresh equity suggests strategic positioning rather than financial pressure, as companies across the industry adjust to the post-reform capital regime.

Further details on the offer structure and timetable are expected to be released after the completion of regulatory approvals.