SUNU Assurances shareholders approve major recapitalisation plan, authorise shopping of N9bn fresh capital

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Chuks Udo Okonta

Shareholders of SUNU Assurances Nigeria Plc have unanimously approved a series of special resolutions empowering the insurance firm to embark on an extensive capital-raising programme aimed at meeting new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

At the Extraordinary General Meeting (EGM) held in Lagos, shareholders turned out in large numbers and gave full backing to the company’s plan to raise fresh capital through a combination of private placements, rights issues, public offers or any other structure deemed appropriate by the Board of Directors.

Shareholders Adopt Wide-Ranging Resolutions

The approved resolutions grant the board authority to:

Establish capital-raising programmes in tranches or series, with pricing and structure to be determined by the Board, subject to regulatory approvals.

Undertake all actions necessary to implement the capital raise, including appointment of advisers and execution of required documents.

Increase the company’s share capital by the exact number of shares required for the capital raise and allot new shares accordingly.

Trade untaken rights on the Nigerian Exchange (NGX) or re-offer them to interested existing shareholders.

Address any issues arising from the recapitalisation exercise and vary terms of the offer where necessary.

Execute all related legal documents and ensure registration of share capital changes with the Corporate Affairs Commission.

Recapitalisation Driven by NIIRA 2025

Speaking at the meeting, Chairman of SUNU Assurances, Kyari Abba Bukar, said the recapitalisation became necessary following the enactment of NIIRA 2025, which raised the Minimum Capital Requirement (MCR) for non-life insurers to N15 billion, up from the current N3 billion.

According to him, NAICOM has set July 30, 2026 as the compliance deadline.

“As at 30th September 2025, the company requires N9 billion to meet the MCR. This highlights the urgent need for strategic action to safeguard financial stability and ensure regulatory compliance,” Bukar said.

He described the recapitalisation as “a pivotal moment” that will strengthen SUNU’s balance sheet, improve underwriting capacity, attract new investments and enhance market position.

Board Targets Compliance and Improved Market Liquidity

The Chairman also noted that SUNU is addressing its free-float deficiency on the NGX as part of the recapitalisation exercise.

“Free float is essential for maintaining liquidity and complying with NGX listing standards. We are evaluating our capital structure to align with this requirement,” he stated.

SUNU Will Use Combination of Fundraising Options — Chairman

Speaking with journalists after the EGM, Bukar emphasised the company’s readiness to immediately commence the capital raise using a mix of rights issue, public offer, private placement, strategic investors or other methods.

“For us at SUNU, we comply with regulatory requirements. We now have shareholder approval to raise N9 billion before the July 2026 deadline,” he said.

He reaffirmed SUNU’s strong dividend history, noting:
“SUNU has consistently paid dividends for four years, and our shareholders have enjoyed growth in payouts.”

Majority Shareholder to Reduce Stake

Managing Director/CEO, Samuel Ogbodu, disclosed that the SUNU Group, which presently holds 83% shareholding, plans to reduce its stake to 70% to give more room for Nigerian investors.

“What we have done today is crucial for transparency. This is a publicly quoted company, and everything must be done with shareholders’ consent,” Ogbodu said.

He added that SUNU remains a compelling investment.
“Our share price started at 60 kobo, reached N11, and now trades between N4.70 and N5.70. I am confident that within six months, the price will double. We offer value through dividend and capital appreciation.”

Group Reaffirms Commitment to Nigeria

Executive Director, Elie Ogounigni, reaffirmed the SUNU Group’s long-term commitment to the Nigerian market.

“SUNU operates in 17 countries. We mean business. We are committed to meeting all regulatory requirements and welcoming new investors. We have come to stay,” he said.