As the deadline for insurance industry recapitalisation draws closer, foreign investors and local banks are increasingly showing interest in Nigeria’s insurance sector, with many targeting majority equity stakes in struggling firms.
Although the prospect of relinquishing controlling shares is not well-received among many operators seeking fresh capital, industry analysts believe the development could significantly reshape the ownership structure, corporate governance, and competitive landscape of the sector.
The growing interest is being driven by expectations that recapitalisation will trigger consolidation, strengthen underwriting capacity, and position the industry for bigger participation in major sectors of the economy, including oil and gas, aviation, infrastructure, and marine business.
An executive director in one of the second-tier insurance companies, who preferred anonymity, said: ‘We are having both local and foreign investors, including banks, interested in bringing in funds. But the conditions are not favourable to our core investors.’
The ED, however, expressed optimism that the firm would overcome the hurdle and ruled out the merger option.
Wale Onolapo, chairman of Davisther Brokers Limited, speaking on the development, said: ‘You know, he who pays the piper dictates the tune. So, at the end of the day, operators may have no option but to accept the entry of strategic investors coming in with capital.’
Onolapo, who was the managing director/CEO of Sovereign Trust Insurance Plc before retiring to establish his brokerage firm, stated further: ‘What will eventually happen is that either a foreign investor or a local bank interested in taking a controlling stake in an existing company will find a way in.’
‘I am aware of some players who, in confidence, have already conceded that it may simply become a change of name to that of the bank. That is the reality.
‘What this means for the industry is that it will further consolidate its resilience. It is in the best interest of the industry because operators will have more capital to work with. In the long run, it will position the insurance industry better,’ he noted.
Obinna Chilekezi, an insurance consultant and visiting lecturer at the West African Insurance Institute (WAII), The Gambia, said: ‘The issue here is control, since the majority shareholders will call the shots.’
‘For the present owners, the choice is either to ensure the survival of their businesses by allowing new investors to get what they want, source the capital elsewhere, or allow the affected companies to die,’ he added.
At the last count, about six Nigerian insurance companies had approached the capital market to raise about N78.18 billion in fresh funds.
Among the firms is Linkage Assurance Plc, which is seeking to raise N16.3 billion through a Rights Issue involving the issuance of 12.32 billion ordinary shares to existing shareholders, making it one of the largest ongoing capital raises in the sector.
Sovereign Trust Insurance Plc recently launched a N5.02 billion Rights Issue, offering 2.51 billion ordinary shares at N2.00 per share to existing shareholders.
SUNU Assurances Nigeria Plc is also seeking to raise N9.3 billion through a Rights Issue involving 2.08 billion shares priced at N4.50 per share.
Coronation Insurance Plc obtained shareholders’ approval to raise N9.26 billion through a private placement targeted at selected investors.
Universal Insurance Plc is also pursuing a fresh capital injection of up to N15 billion, exploring a combination of a rights issue, public offer, and private placement to meet the recapitalisation threshold.
Guinea Insurance Plc is equally targeting a N5.8 billion Rights Issue involving 5.3 billion ordinary shares at N1.10 per share.
International Energy Insurance (IEI Plc), the latest entrant in the market, has officially launched its N17.5 billion public offer, floating 5,468,750,000 ordinary shares of 50 kobo each at N3.20 per share.
Meanwhile, Egypt’s state-owned MISR Insurance Group, the largest in the Middle East and North Africa (MENA) region, visited the Nigerian insurance market and the National Insurance Commission (NAICOM) in February 2026, with plans to expand its footprint in the non-life insurance and reinsurance segments of the industry.
The expansion push, according to Mohammed Maharaj, MISR chief executive officer, is driven by Nigeria’s growing risk landscape and low insurance penetration rate.
With the signing of NIIRA 2025 by President Bola Ahmed Tinubu on August 5, 2025, insurance and reinsurance companies in Nigeria were given new minimum capital requirements, with July 31, 2026 set as the deadline for compliance.
Under the new requirements, life insurance companies are required to raise their minimum capital requirement (MCR) to N10 billion, general insurance companies to N15 billion, composite insurance companies to N25 billion, and reinsurance companies to N35 billion, alongside a transition to a Risk-Based Capital (RBC) framework.
Ekerete Ola Gam-Ikon, deputy commissioner for Insurance, Finance and Administration, speaking at the opening ceremony of Insurance Industry Week held in Lagos, said the Nigerian insurance industry holds immense potential not only as a key component of the financial services sector but also as a catalyst for national growth and development.
Urging operators to take advantage of the opportunities presented by the ongoing reforms, he said: ‘Let us sustain the momentum we have built, and let us work together to create an insurance sector that is inclusive, innovative, and globally competitive.’
Gam-Ikon stated that the success of NIIRA 2025 will depend on how effectively its provisions are implemented and the momentum of reform sustained.
‘As regulators, we remain committed to ensuring diligent and consistent enforcement of the Act. We will continue to strengthen our supervisory frameworks, deepen engagement with industry operators, and uphold the highest standards of accountability.’
‘Sustaining reform momentum, however, requires more than regulatory action. It demands a shared commitment across the entire ecosystem, insurers, brokers, agents, policymakers, and all relevant stakeholders,’ the NAICOM boss said.