Linkage Assurance concludes N16.2bn rights issue, boosts capital

Linkage Assurance Plc has announced the successful conclusion of its N16.2 billion rights issue, a significant capital raise designed to bolster its financial standing and comply with new regulatory demands. The company issued 12.32 billion ordinary shares at N1.32 per share, with the offering fully subscribed by shareholders. The Securities and Exchange Commission has approved the allotment, and the shares are now admitted for trading on the Nigerian Exchange Limited.

This capital injection is a direct response to the National Insurance Commission's (NAICOM) recapitalisation program for insurance firms. NAICOM's initiative aims to enhance the industry's capacity for underwriting larger risks, improve financial resilience, and bolster policyholder protection. Linkage Assurance views the successful rights issue as a testament to the strong support from its shareholders and stakeholders, reflecting their confidence in the board and management's strategic execution, corporate governance, and risk management practices.

The insurer stated that its enhanced capital base positions it advantageously for expanding underwriting capacity, improving customer service, and exploring new growth avenues across key market segments. The proceeds will be primarily allocated to meeting NAICOM's new minimum capital requirement and funding strategic business expansion. This includes initiatives to boost operational efficiency, deepen market penetration, and solidify its competitive edge within Nigeria's insurance sector. Linkage Assurance reaffirmed its commitment to regulatory compliance, innovative solutions, and sustainable growth benefiting all stakeholders.