Sovereign Trust Insurance Plc has completed the structuring phase of its planned N5 billion Rights Issue, a crucial step in its capital-raising efforts ahead of the Nigerian Insurance Industry Reform Act 2025 (NIIRA) recapitalisation deadline.

The announcement was made during a signing ceremony involving all parties to the Rights Issue at the company's corporate head office in Victoria Island, Lagos. This signifies the conclusion of all internal processes and professional engagements necessary to advance the offer.

Shareholders of Sovereign Trust Insurance Plc will have the opportunity to subscribe to a total of 2,510,848,144 ordinary shares of 50 kobo each. The subscription price is set at N2.00 per share, with the offer structured on the basis of three new shares for every existing holding.

Management has encouraged shareholders to fully utilize this opportunity to increase their equity stake. This initiative is presented as a means to position the company for enhanced returns as it enters a new growth phase. The move also aligns with the broader industry reforms under NIIRA, which are anticipated to significantly reshape Nigeria’s insurance sector.

Lucas Durojaiye, managing director/CEO of Sovereign Trust Insurance Plc, stated that the company's growth agenda is focused on elevating the insurer to be among the top five players in Nigeria's insurance industry. He emphasized that a strong capital base is critical for achieving these strategic objectives.

“This underscores the importance of the Rights Issue and our appeal to shareholders to fully subscribe and deepen their investment in the company,” Durojaiye said. He further affirmed the company's commitment to strengthening its market position and becoming one of the most preferred insurance brands in Nigeria for customers, investors, and employees.