Universal Insurance Targets Growth With N3.2bn Rights Offer

Universal Insurance Plc has concluded arrangements for its proposed N3.2bn Rights Issue as the company moves to strengthen its capital base, enhance underwriting capacity, and deepen its market presence within Nigeria’s insurance industry.

The insurer formally executed the transaction documents for the proposed offer during a signing ceremony held in Lagos, concluding the preparation phase ahead of an anticipated market launch in the coming weeks, subject to final approval by the Securities and Exchange Commission.

Under the proposed Rights Issue, Universal Insurance plans to issue 2,666,666,667 ordinary shares of 50 kobo each at N1.20 per share based on one new ordinary share for every six ordinary shares currently held by shareholders.

The company stated that only shareholders whose names appeared in the register of members as of the close of business on March 30, 2026, would qualify to participate in the offer.

Speaking during the signing ceremony, Chairman of Universal Insurance Plc, Jasper Osita Nduagwuike, said the company had sustained steady growth over the past five years despite prevailing economic and industry challenges.

According to him, the planned capital raise represents a strategic step toward strengthening the insurer’s operations and positioning it for long-term growth.

“We have a very solid foundation. For a company that has spent over 60 years in the industry, survived economic cycles and industry challenges, and is still standing strong, it speaks volumes about our resilience,” he said.

Nduagwuike noted that Universal Insurance remains one of the few insurance firms established in the early 1960s that continues to operate and expand within the Nigerian market.

He explained that the ongoing recapitalisation exercise would further improve the company’s competitiveness, increase its market share, and enhance operational efficiency.

The chairman also urged shareholders and other stakeholders to support the offer and ensure it achieves full subscription, stressing that stronger shareholder participation would position the company for improved performance and sustainable expansion.

If fully subscribed, the Rights Issue is expected to significantly strengthen the company’s financial position, improve its underwriting capabilities, and support strategic growth initiatives aimed at expanding its footprint across the Nigerian insurance market.

The development comes amid broader efforts by operators in Nigeria’s insurance sector to strengthen their balance sheets, improve solvency levels, and meet evolving industry demands through fresh capital injections and operational restructuring.