DistantNews
Support us
🇳🇬 Nigeria /Economy & Trade

Listed Insurance Companies Move to Boost Capital Base, Eight Seek N78.66bn in Recapitalisation Drive

From ThisDay · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Eight listed insurance companies in Nigeria are seeking to raise approximately N78.66 billion to bolster their capital bases.
  • This recapitalization drive is in preparation for the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
  • Companies are using various methods like rights issues and public offers, with Lasaco Assurance leading the fundraising efforts.

Nigerian insurance companies are actively working to strengthen their financial standing ahead of the 2025 Nigerian Insurance Industry Reform Act (NIIRA). Eight insurers listed on the Nigerian Exchange Limited (NGX) are aiming to raise a combined N78.66 billion through diverse capital-raising initiatives.

Our recapitalisation journey reflects our unwavering commitment to transparency, accountability and responsible corporate governance.

— Ademoye Shobo, Managing Director and Chief Executive Officer of Lasaco AssuranceShobo commented on the successful capital raising exercise by Lasaco Assurance, highlighting the company's dedication to strong governance.

These companies, including Lasaco Assurance Plc, International Energy Insurance Plc, and Linkage Assurance Plc, are employing strategies such as rights issues, public offers, private placements, and equity injections from existing shareholders. This proactive approach is designed to meet the new statutory capital requirements mandated by the upcoming reform law.

Lasaco Assurance has emerged as the leading fundraiser, successfully raising N19.30 billion through a rights issue that exceeded its target. The company's CEO, Ademoye Shobo, described the outcome as a strong vote of confidence in their long-term strategy and commitment to corporate governance. International Energy Insurance Plc and Linkage Assurance Plc are also pursuing significant capital raises through public offers and rights issues, respectively.

The overwhelming support from our shareholders and the successful completion of key regulatory milestones further validate the confidence reposed in our company.

— Ademoye Shobo, Managing Director and Chief Executive Officer of Lasaco AssuranceShobo expressed gratitude for shareholder support and regulatory approvals during the company's recapitalization efforts.

Other insurers involved in this recapitalization drive include Guinea Insurance Plc, Universal Insurance Plc, Sunu Assurances Nigeria Plc, Sovereign Trust Insurance Plc, and Regency Alliance Insurance Plc. Their efforts underscore the industry's collective move towards enhanced financial resilience and compliance with regulatory changes.

We remain focused on concluding the remaining phases of the exercise and positioning Lasaco Assurance for sustained growth, enhanced competitiveness and greater value creation for all our stakeholders.

— Ademoye Shobo, Managing Director and Chief Executive Officer of Lasaco AssuranceShobo outlined the company's future focus following the successful capital raising, aiming for growth and stakeholder value.
DistantNews Editorial

Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog