By David Akinmola
Nigeria’s insurance sector recapitalisation momentum strengthened at the weekend as another underwriting firm moved to raise fresh equity from shareholders to meet new capital thresholds and position for expansion under sweeping industry reforms.
The company notified the Nigerian Exchange Limited (NGX) that it has secured approval from the Securities and Exchange Commission to commence a rights issue of 12.32 billion ordinary shares of 50 kobo each at N1.32 per share.
The offer, valued at about N16.3 billion, will be made to existing shareholders on the basis of two new ordinary shares for every three ordinary shares held as at January 22, 2026.
Under the timetable released to the market, the offer will open on March 11 and close on April 23, 2026, with the rights expected to trade on the floor of the exchange during the acceptance period.
The capital raise forms part of the company’s strategy to strengthen its financial base and comply with the minimum capital requirements introduced under the Nigeria Insurance Industry Reform Act 2025, which is reshaping Nigeria’s insurance industry.
The insurer, Linkage Assurance Plc, said the rights circular will be distributed to shareholders by the registrar to the offer, Apel Capital Registrars Limited, while investors can also access the documents and participate in the issue through an online platform created for the exercise.
Shareholders may subscribe electronically or through paper participation forms available on the registrar’s website and through issuing houses, while completed forms with evidence of payment must be submitted before the closing date.
Industry analysts say the latest capital raising underscores how operators are responding to the regulatory push to build stronger balance sheets and enhance underwriting capacity.
They note that the recapitalisation programme is expected to trigger a wave of rights issues, private placements and possible mergers across the sector as insurers position themselves to meet higher solvency thresholds and compete more effectively.
An insurance sector analyst in Lagos said firms that succeed in raising new capital early would gain a strategic advantage as the industry adjusts to the new regulatory environment.
“Recapitalisation will ultimately reshape the competitive structure of the insurance market. Stronger balance sheets will allow companies to underwrite larger risks, invest in technology and expand distribution networks,” the analyst said.
He added that deeper capitalisation could also strengthen public confidence in the industry, particularly if operators improve claims settlement performance and product innovation.
Stakeholders believe the reform process, championed by the National Insurance Commission (NAICOM), is aimed at building a more resilient insurance market capable of supporting infrastructure financing, protecting households and mobilising long-term investment capital.
Market watchers also say the recapitalisation wave could accelerate consolidation within the sector, with smaller insurers likely to explore strategic partnerships, mergers or acquisitions to remain competitive.
For investors, analysts say rights issues provide an opportunity to increase equity participation in insurers that are repositioning to take advantage of the industry’s expected long-term growth.
They add that stronger capitalised firms will be better placed to support Nigeria’s economic expansion by underwriting complex risks across sectors such as energy, aviation, agriculture and infrastructure.
