Insurer to raise N9.34 billion from rights issue

Sunu Assurances Plc has secured internal approvals for a N9.34 billion capital raise ahead of final regulatory clearance.

The move, which signals a broader scramble by underwriters to shore up capital buffers, comes amid expectations of tougher regulatory requirements and growing competition in a market that is l grappling with low penetration and weak consumer confidence.

The underwriter’s rights issue, involving 2.08 billion ordinary shares at N4.50 each, is set for launch in the coming weeks, subject to approval by the Securities and Exchange Commission (SEC). It will mark one of the most significant capital-raising exercises in the sector this year.

The company earlier secured approvals from the Nigerian Exchange Limited and a ‘no objection’ from the National Insurance Commission (NAICOM), effectively placing the transaction clearance in its final regulatory phase.

At a board meeting in Lagos, directors and advisers signed off on the offer documents after due verification, with the company affirming the accuracy of its financial disclosures and the absence of material liabilities or pending litigation that could undermine the offer.

Commenting on the plan, Managing Director/Chief Executive Officer, Samuel Ogbodu, said the exercise is aimed at strengthening the insurer’s financial base and positioning it for growth.

“This transaction is not just about raising capital; it is about positioning SUNU for the next phase of growth in Nigeria’s insurance market. We are strengthening our balance sheet to take advantage of emerging opportunities, expand our footprint and invest in digital capabilities that will improve efficiency and customer experience,” he said.

Proceeds from the offer are expected to be channelled into capital strengthening, business expansion, brand visibility and digital transformation as the firm seeks to expand market share and improve service delivery.