Sovereign Trust Insurance Plc has announced plans to raise N5 billion via a Rights Issue as part of its broader capitalisation and expansion strategy, following approval from its Board of Directors.
The offer, awaiting final clearance from regulators will be issued to existing shareholders and is aimed at boosting the company’s financial strength, enhancing its underwriting capacity, and aligning with NAICOM’s evolving capital requirements.
According to the insurer, the fresh capital will reinforce operational resilience, support technology upgrades, and accelerate initiatives focused on improving market penetration.
“This Rights Issue is a strategic move that strengthens our solvency, enhances shareholder value, and positions us for sustained growth,” management said.
Analysts note that the move reflects ongoing recapitalisation efforts across the insurance sector as operators scale up to meet rising demand for stronger underwriting capacity in oil and gas, infrastructure, health, retail, and digital insurance.
Sovereign Trust Insurance added that details on offer terms and subscription timelines will be communicated upon approval by NAICOM and the Securities and Exchange Commission.
The company has recently invested in digital transformation and service optimisation, and expects the capital raise to further deepen these initiatives.
