Universal Insurance Plc has announced plans to raise up to N15 billion in fresh capital to comply with the new minimum capital requirements for non-life insurers under the Nigeria Insurance Industry Reform Act (NIIRA) 2025, issued by the National Insurance Commission (NAICOM).
In a corporate disclosure filed on the Nigerian Exchange (NGX), the insurer revealed that shareholders will vote on the proposal at an Extraordinary General Meeting (EGM) scheduled for February 5, 2026, in Lagos.
Multiple Capital-Raising Options on the Table
According to the filing, the fundraising may be executed via:
✔ Public offering
✔ Private placement
✔ Rights issue
✔ Or a mix of methods approved by the board
Pricing of the offer will be determined through book building or other valuation mechanisms after regulatory clearance. The board will also decide the structure, tranches, and timelines for the issuance.
Share Revalidation and Listing Approval
To facilitate the raise, shareholders will be asked to revalidate and authorize 14 billion unissued ordinary shares, intended for the upcoming exercise.
If the shares prove insufficient, the board will be empowered to increase share capital by the additional volume required. The new shares are expected to be listed on the NGX or any other exchange that supports the transaction.
Compliance With NIIRA 2025
Under NIIRA 2025, non-life insurers are required to maintain a minimum capital base of N15 billion. Universal Insurance currently has:
- 16 billion issued shares
- N8 billion in share capital (as of 9M’2025 results)
The proposed listing of 14 billion units could raise the required capital in full, positioning the company ahead of industrywide recapitalisation pressures.
Universal Insurance’ Strong 2025 Market Performance
Universal Insurance emerged as the 6th best-performing insurance stock on the NGX in 2025, with its share price advancing 83.33%, from N0.66 to N1.21, supported by strong trading liquidity of over 6 billion shares.
After a volatile first half—when the stock dipped as low as N0.52 in April—investor demand rebounded sharply between July and August, lifting the price to N1.20 before closing the year at N1.21. The rally tracked broader industry sentiment as the NGX Insurance Index surged 65.64% in 2025.
Financial Highlights
Universal Insurance recorded robust financial growth in the first nine months of 2025:
📌 Profit before tax: N1.12 billion (vs. N232m in 2024)
📌 Insurance revenue: N14.6 billion (vs. N9.8bn)
📌 Net investment income: N2.7 billion (vs. -N645m)
📌 Total assets: N23.6 billion (+6.47%)
📌 Retained earnings: N428.5 million (from -N139.3m)
📌 Premiums: N18 billion (vs. N12bn)
📌 Claims paid: N2.6 billion (+68%)
Why the Capital Raise Matters
Analysts say the planned fundraising could:
✔ Strengthen Universal Insurance’s balance sheet
✔ Enhance underwriting and risk-carrying capacity
✔ Support growth, digital expansion, and new product lines
✔ Position the firm competitively under NIIRA-driven sector reforms
The move also aligns with an emerging trend of insurers tapping long-term capital to accelerate innovation and increase market share in Nigeria’s evolving insurance landscape.
