SUNU Assurances moves to market with N9.3bn rights issue plan

…As dividend-paying insurer positions for post-reform growth

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SUNU Assurances Nigeria Plc has taken steps to raise N9.3billion through a Rights Issue of 2,075,285,714 Ordinary shares of 50 kobo each in the ratio of 5 new Ordinary shares for every 14 Ordinary shares of 50 kobo each held by the shareholders on 12th February, 2026 at N4.50 kobo per share, following the approvals of the Board and shareholders of the Company to meet the recapitalization directives issued by National Insurance Commission (NAICOM).

The non-life insurer is preparing to raise fresh equity capital from the Capital Market to meet the N15 billion minimum capital requirement introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, with a July 2026 compliance deadline.

Chairman, Kyari Abba Bukar, said the capital plan is a proactive move to strengthen solvency, expand underwriting capacity and maintain competitive positioning in a tightening regulatory environment.

“This is a growth initiative. We are positioning early to meet the new benchmark and enhance our capacity to underwrite larger and more complex risks,” he said.
Managing Director/CEO, Mr. Samuel Ogbodu, underscored the company’s dividend track record, noting that SUNU has paid dividends consistently over the past three to four years.

“We have maintained steady growth in premium income, profitability and governance standards over the last decade. Our shareholders have been rewarded, and we project continuity in value delivery,” Ogbodu said.

The SUNU Group, as the majority shareholder with approximately 83% equity interest, has decided to reduce its stake in order to comply with the free float requirements of the Nigerian Exchange Limited. This strategic review of the Company’s ownership structure aligns with the Group’s long term growth objectives and its commitment to supporting market-development.

It is further noted that while the parent company possesses the financial capacity to fully recapitalize the business, the Board has determined that existing shareholders and new Nigerian investors shall be afforded the opportunity to participate in the next phase of the Company’s growth. This decision underscores SUNU’s commitment to broadening Nigerian participation in the ownership structure of the Company, Ogbodu added.

The Company’s performance has recently been recognized through the conferment of the Highest Share Price Appreciation Award at the PEARL Awards, a development which reinforces investor confidence and provides a strong foundation for the proposed capital raise.

Market watchers say SUNU’s early move signals strategic positioning rather than distress, as insurers race to align with the post-reform capital framework.
Details of the offer structure and timeline are expected to be disclosed once regulatory processes are concluded.