At least seven insurance companies are in advanced stages of raising about N100 billion as part of the first phase of the industry’s ongoing recapitalisation.
Regulatory sources indicated that the firms have secured shareholder approvals and are nearing final regulatory clearance, with initial offers expected within the current quarter.
The capital-raising plans include a mix of rights issues, public offers, private placements, and shareholder injections aimed at strengthening balance sheets and meeting new statutory requirements.
Guinea Insurance has already launched a N5.82 billion rights issue, offering new shares to existing shareholders to boost its capital base and underwriting capacity.
Similarly, Universal Insurance is seeking to raise N3.2 billion through a rights issue as part of a broader plan to secure up to N15 billion in fresh capital.
Coronation Insurance is also set to seek shareholder approval for a N9 billion private placement, while other firms are exploring flexible funding structures, including debt and hybrid instruments.
The recapitalisation follows the enactment of the Nigerian Insurance Industry Reform Act 2025, which significantly raised minimum capital requirements across the sector.
Industry analysts say the exercise could attract strong investor interest, similar to the banking sector recapitalisation, which raised trillions of naira in new equity.
They added that increased capitalisation would enhance insurers’ capacity to underwrite larger risks, improve operational performance, and support broader economic growth.
