NEW CAPITAL RUSH: Five Insurers Race to Raise N75bn Ahead of 2026 Deadline
Nigeria’s insurance industry has officially entered recapitalisation season, and five insurance companies are already moving fast to raise a combined N75 billion in fresh capital.
This rush is driven by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which sharply increased minimum capital requirements across the sector.
Here’s the full breakdown in a simple, investor-friendly way:
What’s Happening?
The new law (NIIRA 2025) now requires:
• Non-life insurers: Minimum capital of N15bn
• Life insurers: Minimum capital of N10bn
• Reinsurance companies: Minimum capital of N35bn
To meet these new standards before the 2026 deadline, several insurers are turning to the market — via rights issues, private placements, public offers, and even mergers.
The Five Insurers Raising Funds NOW
1️⃣ Guinea Insurance — Up to N15bn
• Seeking shareholders’ approval at an EGM
• Increasing share capital from N4bn to N19bn
• Will raise capital through rights issue and private placement
• Purpose: meet statutory requirement + strengthen financial base
2️⃣ Sovereign Trust Insurance — Up to N20bn
• Shareholders have already approved the capital raise
• Starting with a N5bn rights issue in Q1 2026
• Move aligns with NIIRA’s call for stronger capital buffers
3️⃣ SUNU Assurances — Up to N9bn
• Approved at an EGM in Lagos
• Can raise funds via rights issue, private placement, or public offer
• Board empowered to increase share capital and structure offers as needed
• SUNU Group has reaffirmed its long-term commitment to Nigeria
4️⃣ Linkage Assurance — Up to N16bn
• Approved via private placement, public offer, rights issue — or a combination
• Board authorized to finalize pricing, timing, and method
• Share capital will also be increased
5️⃣ Veritas Kapital Insurance — Up to N15bn
• Approved at their 48th AGM in Abuja
• Will raise funds via private placement
• Share capital also increases as part of the process
Other Industry Movements
• Lasaco Assurance: Already raised N11.1bn via private placement
• Regency Alliance: Received approval to raise capital
• Cornerstone Insurance: Says no need to raise capital — already compliant with NIIRA
• Share capital: N9.08bn
• Shareholders’ fund: Over N67bn
️ NAICOM Steps Up Oversight
NAICOM has brought in the Big Four audit firms, including EY, to verify that insurers truly meet the new requirements.
Key requirements include:
• Capital must be placed in an escrow account with CBN
• Only admissible assets will count
• Companies that fail to meet MCR will face liquidation, mergers, or other regulatory actions
18 companies have already indicated readiness for verification.
Why This Matters (Investor Insight)
This recapitalisation drive will:
• Strengthen the insurance sector
• Improve solvency and claims-paying ability
• Attract more institutional and foreign investment
• Push out weaker players
• Trigger mergers, acquisitions, and market consolidation
For investors, capital raises = opportunity.
Well-capitalized insurers will become more competitive, stable, and attractive over the next 12–24 months.
Nigeria’s insurance industry has officially entered recapitalisation season, and five insurance companies are already moving fast to raise a combined N75 billion in fresh capital.
This rush is driven by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which sharply increased minimum capital requirements across the sector.
Here’s the full breakdown in a simple, investor-friendly way:
What’s Happening?
The new law (NIIRA 2025) now requires:
• Non-life insurers: Minimum capital of N15bn
• Life insurers: Minimum capital of N10bn
• Reinsurance companies: Minimum capital of N35bn
To meet these new standards before the 2026 deadline, several insurers are turning to the market — via rights issues, private placements, public offers, and even mergers.
The Five Insurers Raising Funds NOW
1️⃣ Guinea Insurance — Up to N15bn
• Seeking shareholders’ approval at an EGM
• Increasing share capital from N4bn to N19bn
• Will raise capital through rights issue and private placement
• Purpose: meet statutory requirement + strengthen financial base
2️⃣ Sovereign Trust Insurance — Up to N20bn
• Shareholders have already approved the capital raise
• Starting with a N5bn rights issue in Q1 2026
• Move aligns with NIIRA’s call for stronger capital buffers
3️⃣ SUNU Assurances — Up to N9bn
• Approved at an EGM in Lagos
• Can raise funds via rights issue, private placement, or public offer
• Board empowered to increase share capital and structure offers as needed
• SUNU Group has reaffirmed its long-term commitment to Nigeria
4️⃣ Linkage Assurance — Up to N16bn
• Approved via private placement, public offer, rights issue — or a combination
• Board authorized to finalize pricing, timing, and method
• Share capital will also be increased
5️⃣ Veritas Kapital Insurance — Up to N15bn
• Approved at their 48th AGM in Abuja
• Will raise funds via private placement
• Share capital also increases as part of the process
Other Industry Movements
• Lasaco Assurance: Already raised N11.1bn via private placement
• Regency Alliance: Received approval to raise capital
• Cornerstone Insurance: Says no need to raise capital — already compliant with NIIRA
• Share capital: N9.08bn
• Shareholders’ fund: Over N67bn
️ NAICOM Steps Up Oversight
NAICOM has brought in the Big Four audit firms, including EY, to verify that insurers truly meet the new requirements.
Key requirements include:
• Capital must be placed in an escrow account with CBN
• Only admissible assets will count
• Companies that fail to meet MCR will face liquidation, mergers, or other regulatory actions
18 companies have already indicated readiness for verification.
Why This Matters (Investor Insight)
This recapitalisation drive will:
• Strengthen the insurance sector
• Improve solvency and claims-paying ability
• Attract more institutional and foreign investment
• Push out weaker players
• Trigger mergers, acquisitions, and market consolidation
For investors, capital raises = opportunity.
Well-capitalized insurers will become more competitive, stable, and attractive over the next 12–24 months.