Shareholders of SUNU Assurance Nigeria Plc have given their full backing to a major capital raising initiative. The firm plans to secure N9 billion to bolster its financial strength in preparation for new regulatory demands.
Meeting Regulatory Demands and Building for the Future
The crucial approval was granted during an Extraordinary General Meeting (EGM) held in Lagos. This step is a direct response to the stringent new capital rules introduced by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Under this act, the National Insurance Commission (NAICOM) has significantly increased the minimum capital requirement for non-life insurance companies. The threshold has jumped from N3 billion to N15 billion. The regulator set a firm deadline of July 30, 2026, for all operators to comply.
Strategic Move to Bridge Capital Gap
For SUNU Assurance, the approved N9 billion capital raise is essential to bridge the gap between its current capital and the new N15 billion mandate. The company's leadership views this as a strategic necessity for long-term survival and growth.
Addressing shareholders at the EGM, the Chairman of the Board, Kyri Abba Bukar, outlined the broader vision behind the recapitalisation plan. He stated that it was designed not merely for regulatory compliance but to fundamentally enhance the company's market position.
"With the recapitalisation window now clearly defined, this is the most efficient path to remain competitive in a more demanding regulatory ecosystem," Bukar explained. "Strengthening our capital base will expand underwriting headroom, reinforce market confidence and attract new investors."
Flexible Fundraising Approach
The board of SUNU Assurance has been authorised to explore multiple avenues to raise the required funds. The approved resolutions provide flexibility, allowing the company to utilise a combination of methods subject to regulatory approvals.
The potential fundraising options include:
- A rights issue to existing shareholders.
- A public offer to the wider investing community.
- A private placement with select investors.
- Securing strategic investment from partners.
This move by SUNU Assurance is part of a wider wave of activity sweeping across Nigeria's insurance sector. Many other underwriters are intensifying their efforts to meet the NAICOM deadline, setting the stage for a more robust and competitive industry landscape by 2026.
