BY NKECHI NAECHE-ESEZOBOR—Sovereign Trust Insurance (STI) Plc has launched a ₦5.02 billion Rights Issue aimed primarily at strengthening its capital base and positioning the company for future growth in line with evolving regulatory requirements in the Nigerian insurance industry.
The company’s Managing Director and Chief Executive Officer, Dr. Lucas Durojaiye, said the capital raise is part of STI’s broader strategy to reinforce its financial stability, improve operational capacity and secure a stronger position within the insurance market.
According to him, the Rights Issue will help the underwriting firm exceed the recapitalisation benchmark introduced under the Nigeria Insurance Industry Reform Act (NIIRA) 2025 while enhancing the company’s ability to meet claims obligations and sustain long-term growth.
Durojaiye explained that the company’s current asset base stands above ₦27 billion and noted that the additional capital injection from the Rights Issue and strategic investors would further strengthen the firm’s financial standing.
He also stated that the fresh funds would support technology upgrades, expansion of digital insurance platforms and the development of innovative insurance products targeted at emerging risks and underserved sectors of the economy.
The STI boss added that the company plans to expand its market presence and improve service delivery through enhanced digital channels, including online policy processing and claims management systems.
“Our strategy is focused on building a stronger and more competitive insurance company. A robust capital base is critical to achieving our growth objectives and positioning Sovereign Trust Insurance among the top players in the Nigerian insurance industry,” Durojaiye said.
He urged shareholders to fully subscribe to the Rights Issue, describing it as an opportunity to strengthen their investment in the company while supporting its long-term expansion plans.
The Rights Issue is currently open to existing shareholders, with application forms available through licensed stockbrokers and the company’s investor platform.
