SUNU Assurances Nigeria Plc has taken steps to raise N9.3 billion through a rights issue by offering 2,075,285,714 ordinary shares of 50 Kobo each at the price of N4.50.
The new shares would be allotted to shareholders in the ratio of five new ordinary shares for every 14 ordinary shares held as of February 12, 2026.
Proceeds from the exercise would be used by the company to meet the new minimum capital requirements of the National Insurance Commission (NAICOM).
The non-life insurer is preparing to raise fresh equity capital from the capital market to meet the N15 billion minimum capital requirement introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with a July 2026 compliance deadline.
According to the company’s chairman, Mr Kyari Abba Bukar, the capital plan is a proactive move to strengthen solvency, expand underwriting capacity and maintain competitive positioning in a tightening regulatory environment.
“This is a growth initiative. We are positioning early to meet the new benchmark and enhance our capacity to underwrite larger and more complex risks,” he said.
On his part, the chief executive, Mr Samuel Ogbodu, underscored the company’s dividend track record, noting that SUNU has paid dividends consistently over the past three to four years.
“We have maintained steady growth in premium income, profitability and governance standards over the last decade. Our shareholders have been rewarded, and we project continuity in value delivery,” Mr Ogbodu said.
The SUNU Group, as the majority shareholder with approximately 83 per cent equity interest, has decided to reduce its stake to comply with the free float requirements of the Nigerian Exchange (NGX) Limited. The exchange’s rule book said listed firms must float 20 per cent for the general investing public.
This strategic review of the company’s ownership structure aligns with the group’s long-term growth objectives and its commitment to supporting market development.
He said that while the parent company possesses the financial capacity to fully recapitalise the business, the board has determined that existing shareholders and new Nigerian investors shall be afforded the opportunity to participate in the next phase of the company’s growth.
This decision underscores SUNU’s commitment to broadening Nigerian participation in the ownership structure of the Company, Mr Ogbodu added.