overeign Trust Insurance Plc is gearing up for a major financial boost — and it’s making waves across Nigeria’s insurance space! The company has officially secured shareholder approval to raise an initial ₦5 billion through a Rights Issue, marking the first phase of its bold recapitalisation journey.
This isn’t just another fundraise. It’s a strategic move aligned with the new Nigerian Insurance Industry Reform Act (NIIRA) recently signed by President Bola Ahmed Tinubu. The Act demands stronger capital bases, improved solvency, and next-level financial discipline — and Sovereign Trust Insurance is stepping up early.
Phase One: ₦5bn Rights Issue
According to Board Chairman Abimbola Oguntunde, the Rights Issue is on track to wrap up by Q1 2026. Behind the scenes, the company is already working with issuing houses, legal advisers, auditors, and regulators to ensure a smooth launch. In short — the engine is running.
AGM Highlights: Strengthening the Future
At the company’s 30th Annual General Meeting in September 2025, shareholders didn’t just approve the ₦5bn raise — they went even bigger. They endorsed a capital raise of up to ₦20 billion to:
- Reinforce the balance sheet
- Boost liquidity
- Expand underwriting capacity
- Meet NIIRA’s strengthened capital expectations
And there was more good news — shareholders also approved a 5 kobo dividend per share, reflecting the company’s commitment to consistent value creation.
Market Reactions: Investors Are Paying Attention
The Nigerian Exchange (NGX) took notice. Sovereign Trust Insurance’s stock became one of the top gainers across several trading sessions in October 2025, signaling strong investor confidence and belief in the company’s strategic direction.
Leadership Vision: A Top 5 Insurance Powerhouse
Managing Director/CEO Olaotan Soyinka reaffirmed the company’s commitment to becoming one of Nigeria’s top five insurers, backed by:
- Innovation
- Digital transformation
- Market agility
- Underwriting excellence
He urged shareholders to participate fully in the upcoming Rights Issue, emphasizing that these investments will power long-term growth, better customer experiences, and stronger competitive positioning in Nigeria’s evolving insurance landscape.
