SUNU Assurances declares N9.3bn rights problem plan

SUNU Assurances Nigeria Plc has formally initiated a plan to lift N9.3 bn in recent fairness capital by way of a Rights Concern.

It is a strategic transfer to adjust to the brand new regulatory panorama set by the Nigerian Insurance coverage Business Reform Act 2025.

The capital increase, which targets a July 2026 compliance deadline, will see the issuance of two,075,285,714 new atypical shares of fifty kobo every.

Present shareholders are being supplied the chance to subscribe to those shares in a ratio of 5 new atypical shares for each 14 held, at a suggestion value of N4.50 per share.

The initiative is designed to bolster the corporate’s solvency and develop its underwriting capability because the trade transitions to a extra rigorous, risk-based capital framework.

Addressing the corporate’s strategic path, Chairman Kyari Abba Bukar said, “It is a development initiative.

We’re positioning early to fulfill the brand new benchmark and improve our capability to underwrite bigger and extra complicated dangers.”

Regardless of the complexities of the present regulatory setting, the corporate emphasised its secure efficiency and historical past of rewarding shareholders.

The Managing Director and Chief Government Officer, Mr Samuel Ogbodu, famous, “We now have maintained regular development in premium earnings, profitability and governance requirements during the last decade. Our shareholders have been rewarded, and we venture continuity in worth supply.”

Moreover, Ogbodu highlighted the corporate’s intention to foster broader native possession, including, “The Board has decided that current shareholders and new Nigerian traders shall be allowed to take part within the subsequent part of the Firm’s development. This choice underscores SUNU’s dedication to broadening Nigerian participation within the possession construction of the Firm.”

Because the insurance coverage sector faces a crucial recapitalisation window, market analysts view SUNU’s transfer as a proactive sign of institutional energy quite than misery.

The corporate just lately obtained the “Highest Share Value Appreciation Award” on the PEARL Awards, which proponents argue offers a strong basis of investor confidence for this capital-raising train.

The SUNU Group, which stays the bulk shareholder with an roughly 83 per cent stake, has additionally signalled its intention to scale back its holding to adjust to the free float necessities of the Nigerian Trade Restricted.

Full particulars concerning the supply timeline and documentation are anticipated to be disclosed as soon as last regulatory approvals are secured.