Sovereign Trust Insurance Plc has confirmed the remittance of its N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN), complying with requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The disclosure was contained in a statement issued by the company’s Deputy General Manager and Head of Corporate Communications and Investor Relations, Olusegun Bankole.
The payment also aligns with directives from the National Insurance Commission (NAICOM), which mandates insurance operators to deposit 10 per cent of their regulatory minimum capital with the CBN as part of broader reforms aimed at strengthening the sector.
For Sovereign Trust Insurance, a non-life insurer, the required deposit stood at N1.5 billion, which the company says it paid ahead of the May 31, 2026 deadline.
Describing the development, the Managing Director and Chief Executive Officer, Dr. Lucas Durojaiye, said the milestone reflects the company’s ongoing recapitalisation and its commitment to regulatory compliance.
“The fulfilment of the statutory N1.5 billion deposit requirement with the Central Bank of Nigeria represents another important milestone in our growth journey and demonstrates our unwavering commitment to regulatory compliance and financial solvency in competing favourably in the Nigerian insurance space and beyond,” he said.
He added that the company remains focused on expanding its operations, improving efficiency, driving innovation, and strengthening customer service delivery across its insurance portfolio.
According to him, the move also reinforces confidence among stakeholders, including shareholders and policyholders, about the firm’s long-term sustainability and ability to meet obligations.
“The fulfilment… demonstrates our unwavering commitment to regulatory compliance and financial solvency,” he reiterated, stressing the importance of stability in a competitive insurance market.
The company said the remittance forms part of its broader recapitalisation programme designed to align with regulatory reforms aimed at improving resilience and competitiveness within Nigeria’s insurance industry.
As part of this effort, Sovereign Trust Insurance recently launched a rights issue to raise about N5 billion from existing shareholders.
The offer involves the issuance of 2.51 billion ordinary shares of 50 kobo each at N2.00 per share, on the basis of three new shares for every 17 shares held as of March 17, 2026. The exercise opened on May 4, 2026 and is expected to close on June 10, 2026.
Funds raised are expected to support expansion plans and strengthen the company’s capital base in line with evolving regulatory expectations.
Financial performance data showed that the insurer recorded a profit before tax of N1.02 billion for the year ended December 31, 2025, down from N2.64 billion in 2024, largely due to higher operating costs.
Insurance revenue rose to N44.6 billion, up from N40.4 billion in the previous year, supported by growth in gross premiums written, which increased to N46.2 billion.
However, rising claims expenses of N21.9 billion and reinsurance costs of N18.5 billion impacted profitability, resulting in an insurance service result of N4.1 billion, compared with N6.6 billion in the previous year.
Despite the earnings dip, the company expressed confidence that its recapitalisation efforts would strengthen its financial position and support long-term growth within Nigeria’s evolving insurance sector.