SUNU Assurances to raise N9.34bn via Rights Issue

SUNU Assurances Nigeria Plc has announced plans to raise up to N9.34 billion through a Rights Issue to existing shareholders, following approval by its Board of Directors. The decision was formalised during a board meeting on Monday and filed on the Nigerian Exchange Limited on Tuesday.

The recapitalisation plan, approved by shareholders at an Extraordinary General Meeting in Lagos, is aimed at meeting the new minimum capital requirement for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.

The company reported that despite strong growth in insurance revenue in 2025, profit after tax fell nearly 49 per cent. Insurance revenue increased to N21.63 billion from N15.27 billion in 2024, while insurance service results improved to N6.34 billion from N4.50 billion, reflecting stronger underwriting performance. However, overall operating results fell to N2.15 billion from N4.28 billion, and investment income of N1.54 billion was insufficient to offset losses in other operating areas.

To facilitate the capital raise, SUNU Assurances will increase its share capital from N2.91 billion to N3.94 billion by creating 2,075,285,714 new ordinary shares of 50 kobo each. The Rights Issue will allocate five new shares for every fourteen previously held, at N4.50 per share, subject to regulatory approval.

The Board emphasised that a Rights Issue is in the best interest of the company to strengthen its financial position. Management has been authorised to engage professional advisers to implement the offer and prepare the necessary documents, including the Rights Circular and Vending Agreement. The capital raise remains subject to approval by relevant regulatory authorities.