Linkage Assurance Plc has announced the successful completion of its N16.2 billion Rights Issue, effectively meeting the National Insurance Commission’s (NAICOM) minimum capital requirement well ahead of the July 31, 2026 deadline.
The company disclosed this development in a statement signed by its Company Secretary, Moses Omorogbe, on Monday. The Rights Issue, which commenced on March 11, 2026, and concluded on April 23, 2026, was undertaken in response to NAICOM’s recapitalisation directive for insurance operators.
The Securities and Exchange Commission (SEC) has approved the allotment of all shares offered under the Rights Issue. Subsequently, the newly issued shares have been listed on the Nigerian Exchange Limited (NGX).
This capital raising initiative aligns with sweeping reforms in Nigeria’s insurance sector, following the enactment of the Nigerian Insurance Industry Reform Act, 2025. President Bola Ahmed Tinubu signed this legislation into law in August 2025, significantly increasing the minimum capital thresholds for insurance operators.
Under the new framework, non-life insurers are mandated to increase their capital base from N3 billion to N15 billion. Life insurers must raise their capital from N2 billion to N10 billion, while reinsurers are required to increase capital from N10 billion to N35 billion.
The Act also introduced additional policyholder protection measures, including stricter claims settlement timelines and the establishment of support mechanisms for policyholders in the event of insurer insolvency. NAICOM granted insurance companies a one-year transition period to comply, setting July 31, 2026, as the final deadline.
Linkage Assurance noted that the Rights Issue was fully subscribed, reflecting strong investor confidence in the company’s management, governance standards, financial performance, and strategic direction. The proceeds from the offer will be utilized to satisfy the new minimum capital requirement and support business expansion initiatives aligned with its long-term growth strategy.
For the 2025 financial year, Linkage Assurance reported a pre-tax profit of N4.3 billion, a decline from the N5.2 billion recorded in the previous year. Despite this, the company posted strong revenue growth.
Insurance revenue increased by 24.1% year-on-year to N27.5 billion, up from N22.2 billion in 2024. Premium income also rose by 15.8% to N27.8 billion, while claims paid climbed to N5.9 billion, indicating increased underwriting activity during the year.
