Linkage Assurance rakes in N16.2bn through rights issue

Linkage Assurance Plc has announced the successful completion of its N16.2 billion Rights Issue, which opened on March 11th, 2026, and closed on April 23,2026. Following the approval of the Securities and Exchange Commission (SEC), all the shares have been allotted to the subscribers of the issue, and the shares have been listed on the Nigerian Exchange Limited (NGX.)

The Rights Issue was undertaken in response to the NAICOM’s directive on the recapitalization of Insurance Companies in Nigeria.

The conclusion of the capital raising, which was fully subscribed reflects the continued confidence of stakeholders in the Company’s Board and Management, governance, financial performance, and strategic direction.

The Company remains committed to full regulatory compliance and prudent risk management. With its strengthened capital base, the Company is well positioned to provide more robust service to its teeming customers and deliver sustainable value to stakeholders.

The proceeds from the Issue will be used to meet the minimum capital requirement, in compliance with the new regulatory capital requirements, and to implement business expansion in line with the long-term strategic focus of the company.

The recapitalisation exercise in the Nigerian Insurance Industry followed the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Tinubu on August 5, 2025. The legislation significantly increased minimum capital requirements to strengthen insurers’ financial capacity, improve claims-paying ability and prepare the industry for a transition to a Risk-Based Capital (RBC) regime.

Under the new law, life insurance companies are required to maintain a minimum capital of N10 billion, general insurers N15 billion, composite insurers N25 billion, while reinsurers must have N35 billion.