Nigerian insurance companies are laying the groundwork that will enable them to access fresh funds from the nation’s capital market in order to comply with the new minimum capital requirements.
At the least, no fewer than four insurance companies have sought shareholders’ approval that will enable them to tap the capital market for private placements, rights issues and public offers or both.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed by President Bola Ahmed Tinubu on August 5, 2025, introduced higher Minimum Capital Requirements (MCR) for insurance and reinsurance companies, giving them till 31st July 2026 as deadline for compliance.
In the new requirement, life companies are required to shore up their MCR to N10 billion, while general companies are required to hit N15 billion. Composite companies are to raise capital reaching N25 billion, as reinsurance companies will be required to raise N35billion.
One of the insurance sector’s chief executive officers, who preferred his name not mentioned, said: “We have secured the approval of our shareholders to raise funds from the capital market, so we are engaging with our financial advisers for the right strategy to adopt.”
On whether the market will welcome insurance companies, given the low dividend pay-out over the years, he said: “Insurance industry has left that stage, and I can tell you investors would buy into insurance because the future is very bright.”
At the last count, SUNU Assurance, Linkage Assurance, Veritas Kapital and Regency Alliance are positioning themselves to explore the market.
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SUNU Assurances Nigeria Plc secured shareholder approval to raise N9 billion to meet new statutory capital requirements.
At the company’s Extraordinary General Meeting (EGM) held in Lagos, shareholders endorsed multiple resolutions empowering the board to initiate a capital-raising programme through rights issues, public offers, private placements or a combination of fundraising vehicles. The board also received approvals to adjust share capital, engage professional advisers, and list new shares on the Nigerian Exchange (NGX).
Kyari Abba Bukar, chairman of SUNU Assurances, underscored the strategic importance of the recapitalisation, noting that NIIRA 2025 increased MCR for non-life insurers from N3 billion to N15 billion, with a compliance deadline of July 30, 2026.
“As of September 30, 2025, SUNU requires N9 billion to close the gap. The recapitalisation is therefore critical to ensuring solvency, supporting underwriting expansion and maintaining competitive strength in the post-reform landscape,” Bukar said.
Linkage Assurance Plc will also next week have its Extra-Ordinary General Meeting to seek shareholders’ approval to raise additional N16 billion by way of either private placement, rights issue, public offer or a combination.
The underwriting firm will also be increasing its share capital to such amount as may be determined by the board of directors ranking pari passu in all respects with the existing ordinary shares of the Company.
Regency Alliance, at its recent Annual General Meeting, got a resolution allowing directors to increase its share capital by way of private placement, public offer (with or without a preferential allotment) or rights issue or a combination of any of them within Nigeria or internationally, and upon such terms and conditions that the directors may deem fit in the interest of the company, subject to regulatory compliance and approval.
Veritas Kapital Assurance Plc, on the other hand, got a resolution at its AGM, authorising the board of directors to raise capital of up to N15 billion or such other amount as it may determine by way of a private placement, on such terms and conditions, including price, and on dates and time, as may be determined by the board of directors of the company.
