Sovereign Trust Insurance Plc has remitted N1.5 billion to the Central Bank of Nigeria (CBN) as its statutory capital deposit, becoming one of the insurance firms complying with new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The company disclosed this in a statement signed by Mr. Olusegun Bankole, its Deputy General Manager, Corporate Communications and Investor Relations.
Under directives issued by the National Insurance Commission (NAICOM), all insurance operators are required to lodge 10 per cent of their minimum regulatory capital with the CBN as part of ongoing reforms aimed at strengthening the industry’s financial stability and resilience.
As a non-life insurer, Sovereign Trust Insurance was mandated to deposit N1.5 billion before the May 31, 2026 deadline.
Speaking on the development, Dr. Lucas Durojaiye, the company’s Managing Director and Chief Executive Officer, described the remittance as a major milestone in its recapitalisation programme. “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.
According to Durojaiye, the achievement reinforces confidence among shareholders, policyholders, business partners and other stakeholders in the company’s long-term sustainability and ability to meet its obligations.
He added that the insurer remains focused on strengthening its capital base, improving operational efficiency, expanding market reach and delivering innovative insurance solutions across the country.
The company noted that the successful remittance underscores its readiness to align with regulatory reforms designed to improve the competitiveness and resilience of Nigeria’s insurance sector.
As part of its broader recapitalisation strategy, Sovereign Trust Insurance recently launched a rights issue aimed at raising about N5 billion from existing shareholders.
The offer, which opened on May 4, 2026, involves 2.51 billion ordinary shares of 50 kobo each at N2.00 per share on the basis of three new shares for every 17 shares held as of March 17, 2026. The offer is scheduled to close on June 10.
The company said the additional capital would support its growth plans and further strengthen its financial position.
Sovereign Trust Insurance reported a profit before tax of N1.02 billion for the year ended December 31, 2025, according to its latest unaudited financial results filed with the Nigerian Exchange.
Although the company remained profitable, earnings declined from N2.64 billion recorded in 2024 due to rising operating costs.
Insurance revenue rose to N44.6 billion from N40.4 billion in the previous year, while gross premiums written increased by nearly 10 per cent to N46.2 billion.
However, higher insurance service expenses and reinsurance costs weighed on profitability, reducing the insurance service result to N4.1 billion from N6.6 billion in 2024.
The insurer expressed confidence that its ongoing recapitalisation efforts will strengthen its balance sheet and position it for sustainable long-term growth.
