Sovereign Trust Insurance to strengthen capital base, technology, growth with N5.02bn rights issue – MD Durojaiye
Managing Director/ CEO, Sovereign Trust Insurance Plc, Dr. Lucas A. Durojaiye
Nike Popoola
Following a stellar opening to the financial year, Sovereign Trust Insurance (STI) Plc has officially launched its highly anticipated ₦5.02 Billion Rights Issue. This capital raise marks a decisive step toward cementing the company’s position as an undisputed leader in the Nigerian insurance landscape.
A statement from the company today said under the visionary leadership of its MD/CEO, Dr. Lucas Durojaiye, the capital injection is strategically structured around four core growth pillars: financial resilience, cutting-edge technology, product innovation, and aggressive market expansion.
The ₦5.02 billion capital raise is a proactive move to supercharge STI Plc’s balance sheet ahead of evolving market dynamics.
Capital Buffer: Combined with direct capital injections from strategic investors, the Rights Issue will propel the firm’s share capital well beyond its ₦7 billion baseline, strengthening an asset base that currently stands at over ₦27 billion.
Regulatory Compliance: This strategic positioning places STI Plc comfortably ahead of the stringent recapitalization thresholds mandated by the 2025 NIIRA Act, guaranteeing total solvency and long-term security for shareholders, brokers, and institutional partners.
The Integrity Mandate: Having recently discharged over ₦2.5 billion in claims payment within the first four months of the year, this fresh liquidity ensures the company maintains its rapid, frictionless “debt of honor” payment structure, cementing public trust.
Accelerating Digital Disruption and Insurtech Dominance
A substantial portion of the newly raised funds is earmarked to scale STI Plc’s robust technological infrastructure, shifting the company from a traditional underwriter to a digital ecosystem powerhouse.
Seamless Integration: The company will expand its proprietary Application Programming Interface (API) integrations, linking seamlessly with third-party insurance aggregators and digital brokers to completely eliminate physical time gaps in policy underwriting for Marine and Motor lines.
Democratizing Access: Capital will be heavily deployed to optimize the e-portal and mobile channels. This digital-first framework ensures customers outside major urban centers can easily purchase policies, receive automated renewal notifications, and track claims in real time.
Igniting Product Innovation for Emerging Risks
Backed by a fortified capital pool, STI Plc is aggressively widening its risk appetite to capture complex, high-yield, and previously under-penetrated sectors of the Nigerian economy.
Exploiting Underdeveloped Areas: In line with its core corporate mandates, the firm is enhancing its technical underwriting desks to craft bespoke insurance solutions for emerging operational risks.
Specialized Dominance: The company will retain a significantly larger share of premium locally across high-value portfolios, including Marine Cargo, Fire, Motor, and Builders Liability insurance.
4. Sustaining Long-Term Value and Growth
The ultimate objective of this Rights Issue is to deliver compounding value to investors while driving meaningful growth. This momentum is further fueled by high internal morale, driven by the management’s consistent record of prompt welfare and salary structures.
“Our strategy is working, but we are not resting on our laurels,” stated Dr. Lucas Durojaiye, MD/CEO of Sovereign Trust Insurance Plc. “This ₦5.02 Billion Rights Issue is an invitation to our shareholders to co-own the future. We are recapitalizing to serve better, digitalizing to move faster, and innovating to dominate. When it comes to protecting your investments and your assets, we mean business.”
The Sovereign Trust Insurance Plc Rights Issue is now officially open to existing shareholders. Rights circulars and application forms can be downloaded via the company’s investor portal or obtained through licensed stockbrokers nationwide.
Dr. Lucas Durojaiye, MD/CEO said the Management of the company has set a growth agenda which is aimed at positioning the underwriting firm as one of the top five in the insurance industry in Nigeria. The Managing Director’s appeal to Shareholders of the company was unequivocal. “We have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our Shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company”.
