Sovereign Belief Insurance coverage Plc has introduced that its Board of Administrators, chaired by Mr. Abimbola Oguntunde, has accredited an preliminary capital increase of N5 billion via a Rights Problem.
The transfer represents the primary section of the Firm’s broader recapitalisation agenda, designed to align with the Nigerian Insurance coverage Trade Reform Act (NIIRA), lately signed into legislation by President Bola Ahmed Tinubu.
“Sovereign Belief Insurance coverage Plc (the “Firm”) notifies its shareholders and the investing public that its Board of Administrators, chaired by Mr. Abimbola Oguntunde, has accredited an preliminary capital increase of N5 billion via a Rights Problem,” the corporate mentioned in a submitting on the NGX.
The corporate is planning to boost N20 billion in recent capital.
The NIIRA framework mandates stronger capital buffers and enhanced solvency positions throughout the insurance coverage sector. Sovereign Belief Insurance coverage Plc mentioned the Rights Problem underscores its proactive method to capital planning according to business reforms.
A press release signed by Segun Bankole, Head of Company Communications & Investor Relations, confirmed that the Rights Problem is anticipated to be accomplished inside the first quarter of 2026.
According to international finest observe, the Firm has commenced structured engagements with issuing homes, authorized advisers, and auditors. Regulatory approvals are at present being finalized forward of the formal opening of the supply to shareholders.
The assertion says that on the Firm’s thirtieth Annual Common Assembly held on September 25, 2025, shareholders accredited key resolutions to strengthen Sovereign Belief Insurance coverage Plc’s {financial} place.
Chief amongst these was the endorsement of a capital increase of as much as N20 billion to bolster the steadiness sheet, enhance liquidity buffers, and develop underwriting capability underneath the NIIRA regime.
“Shareholders additionally accredited a dividend of 5 kobo per share, reflecting confidence within the Firm’s {financial} self-discipline.”
The assertion says the Nigerian Change (NGX) responded positively, with the Firm’s inventory rating among the many high gainers over a number of buying and selling periods in October 2025.
Commenting on the event, Managing Director/Chief Government Officer, Mr. Olaotan Soyinka, reiterated administration’s ambition to place Sovereign Belief Insurance coverage Plc among the many high 5 insurers in Nigeria.
“We’re dedicated to operational effectivity, premium development, and digital service supply. Shareholders are inspired to take part absolutely within the Rights Problem when it opens,” Soyinka mentioned.
He emphasised that innovation, digital transformation, market agility, and underwriting excellence stay the Firm’s strategic pillars.
“These pillars are essential for sustaining long-term efficiency, enhancing buyer expertise, and consolidating the Firm’s place in a quickly evolving insurance coverage panorama,” he added.
In September, Sovereign Belief Insurance coverage had defined that the capital increase might be carried out via a mixture of share issuance choices, together with public provides, personal placements, or rights points.
