Sovereign Trust Insurance strengthens capital position with N1.5bn CBN deposit ahead NIIRA deadline

SOVEREIGN Trust Insurance Plc has strengthened its capital position following the successful remittance of a N1.5 billion statutory deposit with the Central Bank of Nigeria (CBN), in compliance with regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.

The deposit, which represents 10 percent of the regulatory minimum capital for non-life insurance companies, was completed before the May 31, 2026 deadline as directed by the National Insurance Commission (NAICOM).

The company announced this on Friday on the Nigerian Exchange Limited (NGX), noting that the milestone reflects its commitment to regulatory compliance, financial stability, and policyholder protection, while reinforcing its ongoing recapitalisation programme.

Sovereign Trust Insurance is also currently executing a rights issue launched on May 4, 2026, aimed at raising N5 billion through the issuance of 2,510,848,144 ordinary shares of 50 kobo each at N2.00 per share. The offer is structured on the basis of 3 new shares for every 17 existing shares held as of March 17, 2026, and is scheduled to close on June 10, 2026.

READ ALSO: FCMB completes capital raise to meet CBN recapitalisation requirement

According to the company, the combined capital initiatives are designed to strengthen its balance sheet and align with evolving regulatory expectations in Nigeria’s insurance sector.

Commenting on the development, Managing Director and Chief Executive Officer, Sovereign Trust Insurance, Dr. Lucas Durojaiye, said the deposit marks a significant milestone in the company’s growth trajectory and underscores its commitment to financial discipline and regulatory compliance.

“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,” he said.

He added that the move reinforces stakeholder confidence and positions the company for sustained value creation.

Dr. Durojaiye further noted that the firm remains focused on strengthening its capital base, improving operational efficiency, expanding market reach, and delivering enhanced insurance solutions across Nigeria.

Sovereign Trust Insurance Plc also reaffirmed its commitment to timely compliance with regulatory requirements, while maintaining its reputation for professionalism, prompt claims settlement, and strong corporate governance.