Universal Insurance Plc has officially moved into the final stages of its capital restructuring following the formal signing of transaction documents for a N3.2bn Rights Issue. The ceremony, held in Lagos, marks the successful conclusion of the preparation phase, effectively clearing the path for the insurer to approach the Securities and Exchange Commission for final approval before a full market launch.
Under the terms of the proposed offer, the company plans to issue 2,666,666,667 ordinary shares of 50 kobo each at a price of N1.20 per share. This capital raise is structured on the basis of one new ordinary share for every six ordinary shares currently held, with the company confirming that only shareholders on the register as of the close of business on 30 March 2026 will be eligible to participate.
Commenting during the signing event, the Chairman of Universal Insurance Plc, Jasper Nduagwuike, said, “We have a very solid foundation. For a company that has spent over 60 years in the industry, survived economic cycles and industry challenges, and is still standing strong, it speaks volumes about our resilience.”
The Chairman highlighted that the company has maintained steady growth over the past five years and remains one of the few insurance firms established in the early 1960s that is still operational today.
He emphasised that the ongoing recapitalisation exercise is a strategic necessity that will further strengthen the company’s operations, improve its competitive edge, and significantly enhance its share of the Nigerian insurance market.
“The ongoing recapitalisation exercise would further strengthen the company’s operations, improve its competitiveness, and enhance its market share. I urge stakeholders and shareholders to support the offer and ensure it is oversubscribed,” Nduagwuike added.
The successful completion of the Rights Issue is expected to have a transformative impact on the firm’s financial standing. By reinforcing its capital base and improving underwriting capacity, Universal Insurance aims to support new strategic growth initiatives that will drive operational efficiency and deepen its presence across the industry.
The N3.2bn Rights Issue is not just a routine capital raise; it is a direct response to a massive industry-wide overhaul known as the Nigeria Insurance Industry Reform Act 2025. In 2025, President Bola Tinubu signed the NIIRA 2025 into law, which mandated a 500 per cent increase in minimum capital requirements for insurance companies. To remain licensed, non-life insurers like Universal Insurance must increase their capital from N3bn to N15bn by July 2026. This Rights Issue is a critical piece of Universal’s broader strategy to bridge this gap. Failing to meet these thresholds would lead to licence revocation or forced mergers, as the National Insurance Commission aims to align the sector with Nigeria’s ambition for a $1tn economy.
