Sovereign Trust Insurance set for N5bn rights issue

Sovereign Trust Insurance Plc has completed the structuring phase of its planned N5 billion Rights Issue, marking a key step in its capital-raising programme ahead of the recapitalisation deadline set under the Nigerian Insurance Industry Reform Act 2025 (NIIRA).

The underwriting firm disclosed this at the signing ceremony involving all parties to the Rights Issue, held at its corporate head office in Victoria Island, Lagos. The ceremony signals the conclusion of all internal processes and professional engagements required to advance the offer.

With the structuring phase now finalised, shareholders of Sovereign Trust Insurance Plc will have the opportunity to subscribe to a total of 2,510,848,144 ordinary shares of 50 kobo each, at N2.00 per share, on the basis of three new shares for existing holdings.

Management has urged shareholders to take full advantage of the offer by exercising their rights, noting that the initiative provides an opportunity to increase their equity stake while positioning for enhanced returns as the company enters its next growth phase. The move also aligns with broader industry reforms under NIIRA, which are expected to reshape Nigeria’s insurance landscape.

Speaking on the development, Lucas Durojaiye, managing director/CEO, said the company’s growth agenda is focused on positioning the insurer among the top five players in Nigeria’s insurance industry.

“In pursuing this ambition, we recognise that a strong capital base is critical to delivering on our strategic objectives. This underscores the importance of the Rights Issue and our appeal to shareholders to fully subscribe and deepen their investment in the company,” he said.

Durojaiye added that the company remains committed to strengthening its market position and evolving into one of the most preferred insurance brands in Nigeria, for customers, investors, and employees alike.