SUNU Assurances Shareholders Approve N9bn Fresh Capital Injection

Shareholders of SUNU Assurances Nigeria Plc have unanimously approved a series of special resolutions that empower the insurance firm to embark on an extensive capital-raising programme of N9 billion.

The exercise is designed to meet new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

At the Extraordinary General Meeting (EGM) held in Lagos, shareholders turned out in large numbers. They gave full backing to the company’s plan to raise fresh capital through a combination of private placements, rights issues, public offers or any other structure deemed appropriate by the Board of Directors.

The approved resolutions grant the board authority to establish capital-raising programmes in tranches or series, with pricing and structure to be determined by the Board, subject to regulatory approvals.

The shareholders also empowered the insurer to undertake all actions necessary to implement the capital raise, including the appointment of advisers and the execution of required documents.

Speaking at the meeting, the chairman of SUNU Assurances, Kyari Abba Bukar, said the recapitalisation became necessary following the enactment of NIIRA 2025, which raised the Minimum Capital Requirement (MCR) for non-life insurers to N15 billion, up from the current N3 billion.

According to him, NAICOM has set July 30, 2026 as the compliance deadline.

“As at 30th September 2025, the company requires N9 billion to meet the MCR. This highlights the urgent need for strategic action to safeguard financial stability and ensure regulatory compliance,” Bukar said.

He described the recapitalisation as “a pivotal moment” that will strengthen SUNU’s balance sheet, improve underwriting capacity, attract new investments and enhance market position.

The chairman also noted that SUNU is addressing its free-float deficiency on the NGX as part of the recapitalisation exercise.

“Free float is essential for maintaining liquidity and complying with NGX listing standards. We are evaluating our capital structure to align with this requirement,” he stated.

Bukar emphasised the company’s readiness to immediately commence the capital raise using a mix of rights issues, public offers, private placements, strategic investors, or other methods.

“For us at SUNU, we comply with regulatory requirements. We now have shareholder approval to raise N9 billion before the July 2026 deadline,” he said.

He reaffirmed SUNU’s strong dividend history, noting that “SUNU has consistently paid dividends for four years, and our shareholders have enjoyed growth in payouts.”

On his part, the managing director/CEO of the SUNU Group, Samuel Ogbodu, disclosed that the SUNU Group, which presently holds an 83% shareholding, plans to reduce its stake to 70% to provide more opportunities for Nigerian investors.

“What we have done today is crucial for transparency. This is a publicly quoted company, and everything must be done with shareholders’ consent,” Ogbodu said.

He added that SUNU remains a compelling investment.

“Our share price started at 60 kobo, reached N11, and now trades between N4.70 and N5.70. I am confident that within six months, the price will double. We offer value through dividends and capital appreciation, ” he pointed out.