SUNU Assurances Nigeria Plc has officially initiated a plan to raise N9.3 bn in fresh equity capital through a Rights Issue.

This is a strategic move to comply with the new regulatory landscape set by the Nigerian Insurance Industry Reform Act 2025.

The capital raise, which targets a July 2026 compliance deadline, will see the issuance of 2,075,285,714 new ordinary shares of 50 kobo each.

Existing shareholders are being offered the opportunity to subscribe to these shares in a ratio of five new ordinary shares for every 14 held, at an offer price of N4.50 per share.

The initiative is designed to bolster the company’s solvency and expand its underwriting capacity as the industry transitions to a more rigorous, risk-based capital framework.

Addressing the company’s strategic direction, Chairman Kyari Abba Bukar stated, “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.”

Despite the complexities of the current regulatory environment, the company emphasised its stable performance and history of rewarding shareholders.

The Managing Director and Chief Executive Officer, Mr Samuel Ogbodu, noted, “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.”

Furthermore, Ogbodu highlighted the company’s intention to foster broader local ownership, adding, “The Board has determined that existing shareholders and new Nigerian investors shall be allowed 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.”

As the insurance sector faces a critical recapitalisation window, market analysts view SUNU’s move as a proactive signal of institutional strength rather than distress.

The company recently received the “Highest Share Price Appreciation Award” at the PEARL Awards, which proponents argue provides a solid foundation of investor confidence for this capital-raising exercise.

The SUNU Group, which remains the majority shareholder with an approximately 83 per cent stake, has also signalled its intention to reduce its holding to comply with the free float requirements of the Nigerian Exchange Limited.

Full details regarding the offer timeline and documentation are expected to be disclosed once final regulatory approvals are secured.