By Juliet Ezeh
SUNU Assurances Nigeria Plc has unveiled plans to raise N9.3bn in fresh equity as insurers move to comply with new capital requirements introduced under the Nigerian Insurance Industry Reform Act 2025.
The company said the capital raise will be executed through a Rights Issue that will allow existing shareholders to purchase additional shares as the firm strengthens its balance sheet ahead of the July 2026 regulatory deadline.
Under the plan, SUNU Assurances will issue 2,075,285,714 new ordinary shares of 50 kobo each at an offer price of N4.50 per share. Shareholders will be able to subscribe for five new shares for every 14 shares currently held.
Industry observers say the move reflects the broader recapitalisation push across Nigeria’s insurance sector, where operators are seeking to increase capital buffers to meet stricter solvency requirements and support larger underwriting risks.
Chairman Kyari Abba Bukar said the initiative forms part of the company’s long-term growth strategy rather than a response to financial pressure.
He explained that the capital raise would enable the insurer to meet regulatory benchmarks while expanding its capacity to handle more complex and higher-value risks within the evolving market structure.
Managing Director and Chief Executive Officer Samuel Ogbodu said the company has maintained consistent growth in premium income and profitability over the past decade, adding that the rights issue is expected to sustain long-term value for shareholders.
Ogbodu also noted that the offer will provide opportunities for both existing shareholders and new Nigerian investors to participate in the company’s expansion plans, reinforcing SUNU’s commitment to strengthening local participation in its ownership structure.
The planned equity raise comes at a time when the Nigerian insurance industry is undergoing a major transition toward a risk-based capital framework designed to enhance financial stability and investor confidence.
Analysts say companies that move early to strengthen their capital base are likely to gain a competitive advantage as the recapitalisation deadline approaches.
SUNU Group, the company’s majority shareholder with about 83 per cent stake, has also indicated plans to gradually reduce its holding in order to meet the free float requirements of the Nigerian Exchange.
The insurer said additional details regarding the rights issue, including the offer timetable and regulatory approvals, will be communicated to shareholders once final clearances are obtained.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.