Sovereign Trust Insurance Plc has reaffirmed its financial strength and readiness to meet the statutory recapitalization requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, following the successful completion of its Rights Issue, which recorded an impressive 132.77% subscription rate, reflecting strong investor confidence in the company.
The Rights Issue attracted 631 applications for 3,333,683,711 ordinary shares valued at N6,667,367,442.00, against an offer of 2,510,848,144 ordinary shares at N2.00 per share. The exercise raised N5,021,696,288.00 in fresh equity capital, with the basis of allotment and results receiving clearance from the Securities and Exchange Commission (SEC).
As at December 31, 2025, the company maintained a Minimum Capital Requirement (MCR) baseline of over N10.8 billion. Combined with its statutory deposit with the Central Bank of Nigeria (CBN) and the net proceeds of the Rights Issue, this positions Sovereign Trust Insurance Plc above the applicable regulatory capital thresholds.
Following the National Insurance Commission's (NAICOM) recapitalization update, Sovereign Trust Insurance Plc is among the final eight insurance firms undergoing the final 14-day regulatory capital verification and validation process, having fulfilled the required statutory filing obligations.
Commenting on the Rights Issue results and the ongoing recapitalization exercise, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr. Lucas Durojaiye, expressed appreciation to shareholders and reassured customers, brokers, policyholders and other stakeholders of the company's financial stability, solvency and readiness to meet its operational and claims obligations.
The company also confirmed that allotment to successful applicants will be completed through e-certificates issued by its registrars, Meristem Registrars Limited, within 10 business days of allotment clearance. Refunds for oversubscribed units, amounting to N1,645,673,958.00, will be processed in accordance with SEC guidelines.