Sovereign Trust Insurance Plc has successfully remitted its N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN), meeting regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The announcement was made in a statement by the company's Deputy General Manager and Head of Corporate Communications and Investor Relations, Olusegun Bankole.
The remittance fulfills a directive from the National Insurance Commission (NAICOM), requiring all insurance operators to deposit 10 percent of their regulatory minimum capital with the CBN. This initiative aims to strengthen the Nigerian insurance industry. As a non-life insurer, Sovereign Trust was required to remit N1.5 billion and completed the payment before the May 31, 2026 deadline.
Managing Director and CEO Dr. Lucas Durojaiye described the remittance as a significant milestone in the company's recapitalization and growth journey. He emphasized that it demonstrates the insurer's commitment to regulatory compliance, financial solvency, and long-term sustainability.
“The fulfilment of the statutory N1.5 billion deposit requirement with the Central Bank of Nigeria represents another important milestone in our growth journey and demonstrates our unwavering commitment to regulatory compliance and financial solvency in competing favourably in the Nigerian insurance space and beyond,” Durojaiye said.
He added that the company remains focused on strengthening its capital base, enhancing operational efficiency, expanding market penetration, driving innovation, and delivering improved insurance solutions to customers nationwide. The insurer also reaffirmed its dedication to high standards of corporate governance, professionalism, prompt claims settlement, and customer service while meeting all regulatory obligations.
The successful remittance is part of Sovereign Trust's broader recapitalization program, reflecting its readiness to align with regulatory initiatives designed to improve resilience, stability, and competitiveness among Nigerian insurers.
As part of its capital-raising efforts, Sovereign Trust recently launched a rights issue to raise approximately N5 billion from existing shareholders. The offer, which opened on May 4, 2026, involves issuing 2.51 billion ordinary shares of 50 kobo each at N2.00 per share, on the basis of three new shares for every 17 shares held as of March 17, 2026. The rights issue is expected to close on June 10, 2026, with proceeds earmarked to support the company's growth strategy and strengthen its financial position amid evolving regulatory requirements.
For the financial year ended December 31, 2025, Sovereign Trust reported a profit before tax of N1.02 billion, according to its latest unaudited financial results filed with the Nigerian Exchange. While remaining profitable, earnings declined from N2.64 billion in 2024, largely due to rising operating expenses. Insurance revenue rose to N44.6 billion, compared with N40.4 billion the previous year, supported by a nearly 10 percent increase in gross premiums written, which grew to N46.2 billion. However, insurance service expenses of N21.9 billion and reinsurance costs of N18.5 billion weighed on profitability, resulting in an insurance service result of N4.1 billion, down from N6.6 billion in 2024.
The company expressed confidence that its ongoing recapitalization initiatives would enhance its financial strength and position it for sustainable long-term growth within Nigeria's evolving insurance landscape.
