Universal Insurance Plc has obtained shareholder approval to raise up to N15 billion in fresh capital, following resolutions passed at its Extraordinary General Meeting (EGM) held in Lagos.
The approval was disclosed in a statement dated February 10, 2026, signed by the Company Secretary, Chinedu Onyilimba, and filed with the Nigerian Exchange (NGX).
The planned capital raise is aimed at meeting new regulatory minimum capital requirements and strengthening the company’s financial base.
According to the statement, shareholders authorised the Board of Directors to raise additional capital through various funding channels, including public offerings, private placements, rights issues, or a combination of methods, in both domestic and international capital markets.
“That the Board of Directors of the Company be and are hereby authorized to raise additional capital for the purpose of meeting the minimum capital requirement as required under the relevant laws of up to Fifteen Billion Naira (N15,000,000,000.00) by way of Public Offerings, Private Placements, Rights Issue or any other method or combination of methods, whether in the Nigerian or international capital markets,” the statement read.
Shareholders also approved the revalidation and issuance of 14 billion authorised but unissued shares to facilitate the capital raise. Where necessary, the company may increase its share capital further to accommodate the new funding.
In addition, the Board has been empowered to seek listings on the NGX and other international exchanges, appoint professional advisers, and amend the company’s Memorandum and Articles of Association to reflect the revised share structure.
The approval represents a key milestone in Universal Insurance’s strategy to achieve regulatory compliance and position the company for long-term growth.
Last month, Universal Insurance Plc announced plans to seek shareholder approval to raise up to N15 billion to comply with the National Insurance Commission’s (NAICOM) revised minimum capital requirements for non-life insurers.
In a notice to the NGX, the company said the proposal would be presented at an EGM scheduled for February 5, 2026, in Lagos.
Under NAICOM’s 2025 Insurance Industry Reform Act, non-life insurance companies are required to maintain a minimum capital base of N15 billion.
Universal Insurance currently has 16 billion issued shares held by existing shareholders on the NGX, with a share capital of N8 billion, according to its nine-month 2025 financial statements.
The planned issuance of 14 billion shares is expected to help the company meet the regulatory threshold while leveraging investor interest following its strong market performance in 2025.
Universal Insurance ranked as the sixth-best performing insurance stock on the NGX in 2025, delivering an 83.33 percent return.
Its share price rose from N0.66 at the start of the year to N1.21 by year-end, with trading volume exceeding 6 billion shares.
The stock experienced early volatility, declining to N0.64 in January and falling further to N0.52 by April. Despite brief rebounds in May and June, it remained down about 6 percent at mid-year.
However, renewed investor interest in the second half of the year drove a strong recovery, with the share price climbing from N0.78 in July to N1.20 by August.
Despite some fluctuations toward year-end, the stock closed 2025 at N1.21.
The rally was supported by improved financial performance and overall strength in the insurance sector, as the NGX Insurance Index gained 65.64 percent during the year.
In August 2025, the Federal Government announced a fivefold increase in minimum capital requirements for insurance operators, giving companies 12 months to comply or risk losing their licenses.
The directive, issued by NAICOM under the newly enacted Insurance Industry Reform Act signed by President Bola Ahmed Tinubu, aims to strengthen the sector’s financial resilience.
Under the new framework, minimum capital requirements were raised as follows:
Life insurers: from N2 billion to N10 billion
Reinsurers: from N10 billion to N35 billion
The reforms are designed to enhance insurers’ risk-bearing capacity, improve claims settlement, and boost investor confidence in the industry.
