At least eight underwriting firms have set out to raise a combined N132.5billion capital to meet up with the mounting recapitalization deadline of July 31, Daily Trust reports.

The insurers include Sovereign Trust Insurance, Linkage Assurance, Guinea Insurance, Veritas Kapital Insurance, SUNU Assurances, Lasaco Assurance Plc, Regency Alliance Insurance Plc and International Energy Insurance Plc.

Daily Trust reports that insurance companies had been given twelve calendar months ending July 2026 to comply with the new minimum capital requirement prescribed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The directive confirmed in a circular dated August 13, 2025 sent to all Insurance and Reinsurance Companies in Nigeria explained that the recapitalisation exercise had commenced from July 31, 2025 date of enactment of the Act.

According to the NIIRA 2025, the minimum capital base for non-life insurers has been raised to N15 billion, while the capital requirement for life insurance firms is now at least N10 billion.

Reinsurance companies got the steepest increase, with their capital threshold now pegged at N35 billion.

The National Insurance Commission (NAICOM) in November last year hinted that it had completed its review of the recapitalisation proposals submitted by insurance companies.

The Commissioner for Insurance/CEO of NAICOM, Olusegun Ayo Omosehin, at the 2025 Insurance Directors’ Conference in Lagos, with the theme: “Navigating the New Insurance Landscape: Strategies for NIIRA 2025 Compliance and Growth,” in Lagos, said all the insurance firms have submitted their recapitalisation plans as of the September 30 deadline.

He said reviews have also been completed as the commission will soon begin to communicate the insurers on the outcomes.

“Reviews of the plans have been completed, and the Commission will commence official communication to each company, indicating the outcome of the review of the Progress Report and also provide guidance and maintain open communication with operators to ensure smooth implementation of the recapitalisation exercise.

“Under the leadership of President Bola Ahmed Tinubu, Nigeria is undergoing a bold economic transformation aimed at achieving a $1tn economy by 2030. The insurance industry is expected to play a pivotal role in this journey, serving as both a shock absorber and a growth catalyst,” he said.

said NAICON had embarked on interagency collaboration in order to meet the deadline and ensure a transparent process.

He reiterated that the enactment of NIIRA 2025 marked a pivotal moment and “a comprehensive blueprint to reposition the insurance sector as a key driver of economic growth and social protection.”

Scramble For Capital Raise

To meet up with the deadline on the minimum capital base, underwriters have rolled out plans for rights issues, public offers and private capital placement to raise the required capital.

For instance, SUNU Assurances Nigeria Plc had secured unanimous shareholder approval to embark on a major recapitalisation exercise aimed at raising N9 billion to meet new statutory capital requirements imposed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

At the company’s Extraordinary General Meeting (EGM) held in November, shareholders endorsed multiple resolutions empowering the Board to initiate a capital-raising programme through rights issues, public offers, private placements or a combination of fundraising vehicles.

The Board also received approvals to adjust share capital, engage professional advisers, and list new shares on the Nigerian Exchange (NGX).

Chairman of SUNU Assurances, Kyari Abba Bukar, underscored the strategic importance of the recapitalization.

As of September 30, 2025, SUNU requires N9 billion to close the gap. The recapitalisation is therefore critical to ensuring solvency, supporting underwriting expansion and maintaining competitive strength in the post-reform landscape,” Bukar said.

Linkage Assurance, at its EGM, secured approval to raise an additional N16 billion, while Guinea Insurance got shareholders’ nod to raise up to N15 billion in additional capital.

imilarly, Veritas Kapital Assurance plans to raise N15 billion in fresh capital through a private placement, while Regency Alliance is raising N15billion.

Shareholders had equally approved International Energy Insurance Plc plan to raise up to N17.5billion through various instruments, including private placement, rights issue, public offer, or strategic investor participation, as part of its recapitalisation drive.

The decision was taken at the Extraordinary General Meeting (EGM) held virtually.

At the meeting, shareholders overwhelmingly approved all proposed resolutions, marking a significant milestone in the Company’s recapitalization and growth strategy.

Already, Sovereign Trust Insurance had received shareholders’ approval to raise up to N20bn in additional capital, while the board had approved starting off with a N5bn rights issue, expected to be concluded in the first quarter of 2026.

Lasaco Assurance Plc shareholders also gave the green light for the company to raise additional capital, increasing its shareholders funds by N25 billion through a combination of Private Placement and Rights Issue.

The approval was given during an Extraordinary General Meeting held at Lasaco House in Lagos.

Shareholders voted on key resolutions that will enable the insurer to significantly strengthen its capital base, a move aimed at expanding its business capacity and market presence.

The Chairman, Lasaco Assurance Plc, Mrs. Maria Olateju Phillips, emphasised the strategic importance of the capital raise for the company’s future.

“This exercise will enable us to meet the regulatory requirement and also aid our competitive stand as a company.

“We are great custodians of investments of the shareholders, and they will be quite impressed that we want to forge ahead like this,” she said.

A shareholders’ activist and leader, Adeleke Adebayo, told the regulatory body to tread with caution on the deadline which may potentially force some firms into merger.

He submitted that the deadline for the insurance sector recapitalization is “so stiff and short” for people and companies with different backgrounds and orientations to merge.

Adebayo asked NAICOM to learn from the first banking consolidation, saying “none of those banks that were forced at the last minute to merge together is surviving today.”

He said, “Well, as for NAICOM and the recapitalization of the insurance industry, I think it is just good to give a word of caution to Omoseyi and his group in NAICOM that they should take a good look at history… That all the banks that were forced to merge during Soludo’s consolidation, none of them, not one of them is surviving today.

“So, if we are good students of history, it should inform us as to why certain actions should be taken or not.

“The deadline for the insurance sector recapitalization is so stiff and short and to force people of different cultures, different backgrounds and different orientations to merge within a very short time is going to be counterproductive in the long run. This is not an industry to play with because it is not only about the investors in those companies, it is also about the clients who have put their money and what have you.”

Speaking further, Adebayo said, “So, what NAICOM came up with, it just asked insurance companies to turn in by the end of September what their recapitalization plan would be. So, that’s what they are referring to, just to show that they are doing something and they plan to meet the deadline.

“But I don’t see all of them meeting that deadline. It is rather very, very short for very meaningful valuation discussions to take place that will lead to successful mergers and acquisitions for those of them who may not be able to meet the new capital base.

“So, I would implore those who are in the regulatory room to tread with caution and borrow from our experience in the first banking consolidation where none of the banks, none of those banks that were forced at the last minute to merge together, none of them is surviving today.

“That is a huge loss to Nigerian shareholders. It is a huge loss to the banking industry. It is a huge loss to the labour market and we don’t think that we should have that kind of an experience going forward when we are trying to build a new economy that is targeting $1 trillion by 2030.” (Daily Trust)

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