Sovereign Trust Insurance Plc has announced the successful remittance of a N1.5 billion statutory capital deposit to the Central Bank of Nigeria (CBN). This action complies with regulatory requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The company stated that this deposit fulfills a directive from the National Insurance Commission (NAICOM). NAICOM requires all insurance operators to lodge 10% of their regulatory minimum capital with the CBN as part of ongoing reforms to strengthen the insurance sector.
As a non-life insurance company, Sovereign Trust Insurance was mandated to deposit N1.5 billion, completing the remittance before the May 31, 2026 deadline.
Dr. Lucas Durojaiye, Managing Director and CEO of Sovereign Trust Insurance Plc, described the remittance as a significant milestone in the company’s growth and recapitalization journey. He emphasized its demonstration of commitment to regulatory compliance and financial solvency.
Durojaiye added that this achievement reinforces stakeholder confidence in the company’s financial strength and long-term sustainability. He affirmed the company's focus on strengthening its capital base, improving operational efficiency, expanding market reach, driving innovation, and delivering enhanced insurance solutions.
In line with its capital-raising strategy, Sovereign Trust Insurance recently launched a rights issue. The offer, which opened on May 4, 2026, aims to raise approximately N5 billion by issuing 2.51 billion ordinary shares at N2.00 per share. The rights issue is set to close on June 10, 2026.
The company believes these recapitalization initiatives will bolster its financial capacity and position it for sustainable long-term growth within Nigeria’s evolving insurance landscape. For the financial year ended December 31, 2025, Sovereign Trust Insurance reported a profit before tax of N1.02 billion.
Meanwhile, the total premium paid in the Nigerian Insurance industry for 2025 stood at approximately N2.3 trillion, marking a 47% increase from the N1.5 trillion recorded in the previous year. Non-life insurance contributed about 68.4% (N1.5 trillion) of this total, driven by oil and gas, fire, and motor insurance. Life insurance accounted for 31.6%, boosted by annuity surge. The industry paid out N882 billion in claims during the same period.
The emergence of Insurtech platforms, such as CBI Partnering Insurtech Limited, is also poised to transform the sector. Chris Baywood Ibe, founder of Baywood Group, projects that Insurtech could bring over 200 million Nigerians into the insurance ecosystem by 2030 by addressing accessibility, product complexity, and claims processing concerns.
