SUNU Assurances Nigeria Plc (NGX: SUNUASSUR) has received the unanimous backing of its shareholders to embark on a capital raising programme, aimed at increasing the company’s capital base.
The resolutions were passed at the company’s Extra-Ordinary General Meeting (EGM) held on Tuesday, November 18, 2025, in Lagos according a filing on NGX signed by the Company Secretary, Taiwo Kuku.
Key Resolutions Passed
The shareholders authorized the Board of Directors to raise additional capital through a flexible programme. This programme grants the Board discretion to use various transaction modes, including:
- Private Placements
- Rights Issues
- Public Offers
- Other transaction modes or a combination thereof
The quantum, tranches, series, amounts, pricing, and proportions will be determined by the Board of Directors, subject to obtaining requisite regulatory approvals.
Share Capital Increase and Allotment
The shareholders also authorized the Directors to increase the Company’s share capital by the exact number of ordinary shares required following the determination of the capital raise terms. The Directors are further authorized to allot these new ordinary shares.
In the event the chosen method is a Rights Issue, the resolutions stipulate that shares not fully or partially taken up by existing shareholders may be traded on the floor of the Nigerian Exchange Limited (NGX) to willing buyers within the stipulated period, or offered to other shareholders who have indicated interest in purchasing additional shares.
The need to raise capital stems from the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The new law significantly raised Minimum Capital Requirement (MCR) for non-life insurers (the category SUNU Assurances falls under) from N3 billion to N15 billion.
The Chairman of SUNU Assurances stated that as of September 30, 2025, the company requires N9 billion to meet the new MCR.
The National Insurance Commission (NAICOM) has set a compliance deadline of July 30, 2026 for insurance firms to meet this new capital level.
The equity price of SUNUASSUR has dropped 60% year-to-date, from N11.5 per share on January 3rd to N4.6 per on November 19th.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
