Update shared on 09 Dec 2025
Executive Summary
SUNU Assurance Nigeria Plc received shareholders’ approval to raise N9 billion in capital to meet the new minimum capital requirement (MCR) under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The increase is part of the company’s strategy to strengthen underwriting capacity, improve claim-paying ability, and position the firm for sustainable growth ahead of the July 30, 2026, compliance deadline.
The approved capital raising will be executed via rights issue, public offer, private placement, or strategic investment, subject to regulatory approval. The recapitalisation enhances financial flexibility, expands underwriting headroom, and strengthens market confidence.
The company projects Gross Premium Written of N9.24 billion, a 25.7% YoY increase, driven by both life and non-life insurance lines. Forecasted profit after tax is N891 million, supported by investment income, efficient reinsurance management, and operational discipline.
SUNU Assurance expects strong cash inflows from operating, investing, and financing activities, ending the period with N21.66 billion in cash and cash equivalents, reflecting a robust liquidity position to support strategic initiatives and future growth.
Strategic Insights
- Regulatory Compliance: Capital raising ensures NIIRA 2025 compliance, reducing regulatory risk.
- Operational Strengthening: Enhanced cash and capital base allow increased underwriting capacity.
- Market Confidence: Investors and policyholders benefit from improved solvency and claim-paying ability.
- Future Growth: Higher capital enables strategic expansion, increased market penetration, and product diversification.
Strengths
- Strong projected cash position of N21.66 billion.
- Strategic recapitalisation strengthens underwriting and investment capability.
- Diversified risk exposure with robust reinsurance support.
- Efficient management of operating expenses and claims.
Weaknesses
- Regulatory dependence: NIIRA 2025 compliance is mandatory for continued operations.
- Execution risk: Effective deployment of new capital critical to achieving forecasted growth.
- Market competition: Rising competition in non-life insurance sector may pressure margins.
Outlook – FY 2026
- Focus: Achieve regulatory compliance, strengthen underwriting capacity, and maintain operational efficiency.
- Revenue: Gross Premium Written expected to grow 25.7% YoY.
- Profitability: PAT of N891 million expected, supported by investments and disciplined underwriting.
- Cash Management: Maintain strong liquidity to support strategic initiatives and new product lines.
- Risks: Slow uptake of insurance products, market competition, and potential economic volatility.
Analyst View
“SUNU Assurance is taking a proactive approach to regulatory compliance and market competitiveness by raising N9 billion in capital. The company’s disciplined underwriting, investment strategy, and cash management position it well for sustainable growth. Meeting the NIIRA 2025 requirements will improve market confidence and create a platform for long-term profitability.”
Conclusion
SUNU Assurance Nigeria Plc is set to strengthen its financial capacity through a strategic capital raising, enhancing regulatory compliance, underwriting ability, and liquidity. Projected revenue growth, strong cash position, and robust profitability provide a solid foundation for long-term value creation and market competitiveness.
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