Sovereign Trust Insurance Plc has moved decisively into the execution stage of its N5 billion recapitalisation programme, following the completion of the structuring phase of its much-anticipated Rights Issue.
The milestone was formally marked at a signing ceremony held at the company’s Lagos headquarters, signalling that all internal alignments and professional engagements have been finalised. With this, the underwriting firm is now positioned to strengthen its capital base in line with the requirements of the Nigerian Insurance Industry Recapitalisation Act.
For the company, the move represents more than regulatory compliance—it is a calculated step toward expanding its footprint in an evolving and increasingly competitive insurance landscape.
Speaking at the event, Managing Director and CEO Lucas Durojaiye described the capital raise as central to the company’s long-term ambitions. “In achieving our aspiration of becoming a top-five player in the Nigerian insurance industry, we have identified that a very robust capital base is critical to the success of our set agenda,” he said.
He added, “Hence the need to call on our shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company.”
Durojaiye also highlighted the broader vision underpinning the initiative, noting that the company aims to position itself as one of the most preferred insurers in Nigeria—not only for customers, but also for investors and employees. According to him, Sovereign Trust is working steadily toward becoming “the choice employer of labour” while delivering long-term value to stakeholders and contributing meaningfully to the economy.
With the formalities now completed, the company is set to offer 2,510,848,144 ordinary shares to existing shareholders. The offer is structured at ₦2.00 per share, with a subscription ratio of three new shares for every 17 currently held. Management has urged shareholders to take full advantage of the opportunity, describing it as a strategic pathway to increase their stake and potential returns.
The timing of the exercise is deliberate. As recapitalisation efforts reshape Nigeria’s insurance sector, companies with stronger balance sheets are expected to gain a competitive advantage. By boosting its capital reserves, Sovereign Trust aims to enhance its underwriting capacity—enabling it to take on larger risks and compete more effectively in a consolidating market.
Ultimately, the success of the Rights Issue could mark a turning point for the company, positioning it to scale operations, deepen market relevance, and play a more prominent role in the next phase of growth within Nigeria’s insurance industry.