By David Akinmola
An underwriting firm, SUNU Assurance, has secured shareholders’ approval for a N9 billion recapitalization plan aimed at strengthening its financial capacity ahead of the implementation of the new capital thresholds prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The endorsement given at an Extraordinary General Meeting(EGM) in Lagos, reflects growing momentum across he insurance sector as operators intensify efforts to meet the July 30, 2026 deadline set by the National Insurance Commission (NAICOM).
Under NIIRA 2025, the Minimum Capital Requirement (MCR) for non-life insurers rises from N3 billion to N15 billion, a move regulators say is intended to improve underwriting strength, enhance claims-paying ability, and reposition the industry for global competitiveness. SUNU Assurance currently requires N9 billion to bridge its capital gap.
Speaking to the development, the Chairman of the Board of the insurer, Kyri Abba Bukar, who briefed shareholders during the meeting, said the company’s capital plan was designed not only to meet regulatory compliance but to improve operational efficiency and long-term sustainability.
“With the recapitalization window now clearly defined, this is the most efficient path to remain competitive in a more demanding regulatory ecosystem. Strengthening our capital base will expand underwriting headroom, reinforce market confidence, and attract new investors,” Bukar said.
The approval resolutions authorize the Board to raise funds through a blend of rights issue, public offer, private placement, or strategic investment, subject to regulatory clearance. The directors also received approval to increase the company’s share capital, allot new shares, regularize outstanding compliance issues, and appoint professional advisers.
Bukar added that the capital raise will also support the insurer’s efforts to correct its free-float deficiency on the Nigerian Exchange (NGX), deepening market participation and improving share liquidity.
The Managing Director/Chief Executive Officer, Samuel Ogbodu, said that the underwriter is currently holding 83 per cent equity plans to dilute its stake to 70 per cent to give more Nigerian investors an opportunity to participate in the company’s future growth.
“The recapitalization is both a compliance and a strategic exercise. It positions us to scale efficiently and ensures we are aligned with the industry’s new operating realities, he said.
Ogbodu added that with ongoing expansion plans and strengthened balance sheet prospects, the company expects its share price, currently trading between N4.70 and N5.70, to appreciate significantly within the next six months.
Executive Director, Elie Ogounigni, reaffirmed the SUNU Group’s commitment to the Nigerian market, noting that the recapitalization drive reflects the group’s long-term view of the country’s insurance potential.
“We operate in 17 countries, and when the insurer commits, we deliver. SUNU Nigeria will have full group support to meet and exceed these new requirements,” he assured.
With the NIIRA recapitalization deadline approaching industry analysts say SUNU’s early move demonstrates growing recognition among insurers that compliance is not merely a regulatory obligation, but an opportunity to enhance operational efficiency, build resilience, and reposition for a more competitive market landscape.
