By David Akinmola
As rights issues pile up and balance sheets come under scrutiny, Nigeria’s insurance industry braces for a wave of consolidation that could permanently redraw its competitive map.
With barely five months to the July 30, 2026 recapitalisation deadline set by the National Insurance Commission (NAICOM), Nigeria’s insurance sector has entered a decisive phase that will determine its future structure, stability and long-term competitiveness.
What appears on the surface as a quiet week of regulatory waiting is, in reality, a period of intense strategic manoeuvring. Capital buffers are being stress-tested, rights issues are moving through approval pipelines, and weaker balance sheets are increasingly exposed. While several tier-one insurers sit comfortably above regulatory thresholds, others face urgent funding gaps that may only be bridged through fresh equity injections, mergers or strategic alliances.
Industry analysts say the lull is temporary. Activity is expected to accelerate sharply in the second quarter as companies scramble to close capital shortfalls before the statutory deadline.
Rights Issues Dominate
Among the latest movers, SUNU Assurances Nigeria Plc has secured board approval to raise N9.34 billion via a Rights Issue to existing shareholders. The company plans to increase its issued share capital from N2.91 billion representing 5.81 billion ordinary shares of 50 kobo each — to N3.94 billion, equivalent to 7.89 billion ordinary shares, through the issuance of 2.08 billion new shares.
The offer, structured on the basis of five new shares for every fourteen held at N4.50 per share, remains subject to approvals from the Nigerian Exchange Limited (NGX) and other regulators. Upon completion, the capital raise is expected to strengthen the company’s solvency position and competitive standing.
Similarly, Lasaco Assurance Plc recorded a milestone after securing formal commitment letters from shareholders following its Extraordinary General Meeting. The development reinforces investor backing for its recapitalisation plan and aligns the company with NAICOM’s revised minimum capital framework.
Fortis Global Insurance Plc also returned to the spotlight after convening its Annual General Meeting on February 12, following the lifting of the suspension on its shares. Investors are awaiting further disclosures on resolutions passed and possible capital-raising initiatives.
Earlier transactions remain under regulatory review. Linkage Assurance Plc has applied to list a Rights Issue of 12.3 billion ordinary shares at N1.32 per share on a two-for-three basis, while Guinea Insurance Plc is pursuing a 5.30 billion ordinary shares Rights Issue at N1.10 per share under the same structure.
Universal Insurance Plc, for its part, has secured shareholder approval to raise up to N15 billion through a mix of public offers, rights issues or private placements, subject to regulatory clearances and market conditions. In a further show of compliance, the company recently confirmed payment of N1.5 billion as statutory deposit with the Central Bank of Nigeria, satisfying a key recapitalisation requirement.
Uneven Capital Buffers
Data emerging from the general insurance segment reveal a widening divergence in capital strength.
NEM Insurance Plc leads the category with a surplus of N51.83 billion above the N15 billion minimum requirement. Linkage Assurance Plc follows with a surplus of N27.08 billion, underscoring its relatively strong capital buffer.
However, several firms remain under pressure. Coronation Insurance Plc shows a capital shortfall of N10.22 billion relative to its N25 billion target. Guinea Insurance Plc and International Energy Insurance Plc reported deficits of N10.17 billion and N22.75 billion, respectively, signalling the need for urgent recapitalisation. STACO Insurance Plc remains inactive with no eligible capital recorded.
Elsewhere, Veritas Kapital Assurance Plc holds a modest surplus of N0.79 billion above the N15 billion threshold. But Regency Alliance Insurance Plc, Universal Insurance Plc, SUNU Assurances Nigeria Plc and Sovereign Trust Insurance Plc remain below the required capital base, with deficits ranging between N0.94 billion and N5.04 billion.
For these players, market watchers say the options are narrowing: accelerate rights issues, secure strategic equity partners, or pursue mergers to achieve compliance.
Consolidation Looms
The recapitalisation programme, introduced under sweeping insurance sector reforms, aims to strengthen underwriting capacity, enhance claims-paying ability and reposition the industry to support Nigeria’s broader economic ambitions.
But beyond compliance, the process is fast becoming a structural reset. Analysts expect the coming months to trigger a wave of consolidation that could reduce the number of standalone operators while producing fewer, stronger and better-capitalised institutions.
By July 30, the industry’s hierarchy may look markedly different from today’s — and those unable to cross the capital threshold risk forced mergers, acquisitions or regulatory sanctions.
For investors and policyholders alike, the countdown has begun.
