SOYEAEEGNTRUST
Lxpos, November 2fi, 2025
PRESS RELEASE
SOVEREIG*t TRUST INSURANCE PLC RECEIVES BOARD APPROVAL TO RAISE NS
BILLION THROUGH RIGH'S ISSUE
Sovereign Trust Insurance Flc (the "Company") notifies its Sharehoiders and the investing public that its Board of Directors, chaired by Mr. Abimbola Oguntunde, nos approveci an initial capital raise of N5 oillion througha Rights Issue. This represents a strategic first step in the Company's phased recapitalisation ogencla, unciertaken in alignment with ihe requirements of the Nigerian Insurance Industry Reform Act (NIIRA) recently signed into law by His Excellency, President Bola Ahmeci Tinubu, GCFR. The NIIRA framework manciates stronger capital buffers and enhanced solvency positions across the insurance sector, reinforcing the need for proactive capital planning by responsible operators.
The K'ights Issue is projected to be completed within the first quarter of 2u26. In iine with global best practice, the Company nos commeneea structured engagements with all oppoinieci professional parties, including issuing houses, legal advisers ancl auditors, anal is currently finalizing the necessary regulatory approvals prior to the formal opening of the offer to shareholders.
At the 1*ompany's 30th Annual General Meeting held on 25 SeptemDer 202S; sharehoIclers approveda set of key resolutions designed to strengthen Sovereign Trust Insurance Flc's strategic and financial position. Chief among These was the
endorsement oaf capitol raise of up to N20 billion to reinforce the balance sheet,
improve iiquiclity buffers, anci expand underwriting capacity in line with the neiphtened capital expectations introducecl under the NIIRA repime. Shareholders also approved the payment ofa 5 kobo clividenci per share, affirming confidence in the Company's financial discipline and commitment to sustained value creation. The market reslDoncled positively to these developments, with the Company's stocK emerging among the top gainers on the Nigerian Exchange (NGX) over several trociing sessions in October "£025 -a clear indication of growing investor confidence oncl the strength of the Comfyany's operational fundamentals.
Authorized and Regulated by the National Insurance Gommission RIG 03 DIRECTORS The Nigerian lnsuiws Aso iation
ABIMBOLA OGUNTUNDE (CHAIRMAN), ERIC BALOGUN, EMI FALOUGHI, SHEDRACK CHIEDOZJE ODOH UGOCHI ODEMELAM (ED), XAYODE ADIGUN (ED), EMMANUEL ANKJBE (ED), OLAOTAN SOYtNXA (MD/CEO)
Commending on this development, the managing Director/Chief lecutive Officer, Mr. Olaotan Soyinka. reiterated Management's resolve to position the Company among the top five insurers in Nigeria -a target oiigned with industry benchmarks for operational efficiency, premium growth, and digital service delivery. He encouraged shareholders to participate tully In the Rights Issue wnen it opens, noting that the Company remains firmly committed to innovation, dlgital transformation, marKet agility, and underwriting excelience. According to nim, these illars ore critical for sustaining long-term performance, improving customer experi nce an consolictating the Company's position ina rapidly evolving in u n ela ds e.
SEGLi- hiKOLE
Head. C rporote Communications & Investor Relations