SOVEREIGN TRUST GETS RECAPITALISATION APPROVAL

Sovereign Trust Insurance Plc has received its recapitalisation certificate from the National Insurance Commission, marking the completion of a key regulatory requirement for the insurer.

The certificate was issued after the company successfully met NAICOM’s recapitalisation requirements, strengthening its financial position and capacity to take on larger insurance risks.

The development comes as Nigeria’s insurance industry undergoes a broader capital strengthening exercise aimed at improving the financial resilience of insurers and increasing their ability to retain more risks within the country.

Sovereign Trust Insurance said the new capital position would support its growth plans, improve its underwriting capacity and create greater value for policyholders and shareholders.

The company’s Managing Director and Chief Executive Officer, Dr Lucas Durojaiye, described the certificate as an important milestone, crediting the company’s shareholders, board, employees and other stakeholders for their support throughout the recapitalisation process.

He said the insurer would use its strengthened position to expand its market presence, improve service delivery and pursue new growth opportunities.

The company had earlier said its rights issue, which raised more than N6.6bn, alongside its admissible assets, had taken its total equity above N22bn and placed it above the regulatory capital threshold.

With the certificate now secured, Sovereign Trust Insurance joins insurers that have completed the regulatory verification process under NAICOM’s recapitalisation programme.