Universal Insurance Plc has secured shareholder approval to raise additional capital of N15 billion through a proposed recapitalisation exercise, as the insurer intensifies efforts to strengthen its balance sheet and position the company for long term sustainability in Nigeria’s insurance industry. The approval will be granted at an Extraordinary General Meeting scheduled for February 5, 2026 in Lagos, according to information released to the market.
Currently, Universal Insurance’s share capital stands at N8 billion, with 16 billion ordinary shares held by existing shareholders on the NGX. The board is seeking to revalidate, authorise and regularise 14 billion unissued ordinary shares for the planned capital raise, and to secure approval to list and admit the new shares for trading on the exchange.
Following resolutions passed at the Extraordinary General Meeting, Universal Insurance Plc is moving forward with a comprehensive recapitalisation programme aimed at reinforcing its capital base and improving its capacity to underwrite larger and more diversified risks. Shareholders approved the plan to raise new equity through a combination of capital market instruments, subject to regulatory approvals, as part of efforts to meet industry capital requirements and support future growth. The company said the strategy is designed to “strengthen long term resilience”.
The recapitalisation plan is coming at a time when the insurer is reporting improved financial performance. Gross premium written rose to N18.59 billion from N12.29 billion a year earlier, driven by increased underwriting activity across key insurance segments. Insurance revenue also increased to N14.68 billion compared with N9.85 billion in the prior period, reflecting stronger risk acceptance and improved pricing discipline across its portfolio.
Despite higher insurance service expenses, the company posted an insurance service result of N1.13 billion during the period under review. Net investment income surged to N2.79 billion, supported largely by fair value gains on financial assets. As a result, net insurance and investment income rose to N5.18 billion, almost double the N2.61 billion recorded in the same period of 2024, which the company described as “a clear improvement in earnings quality”.
On the balance sheet, total assets expanded to N21.82 billion as at September 30, 2025, from N18.14 billion a year earlier, supported by growth in financial assets and investment properties. Shareholders’ funds also increased to N14.38 billion from N12.33 billion, reflecting improved profitability and steady reserve accumulation over the period.
Investors have responded positively to the performance, with Universal Insurance’s stock delivering an 83.33 percent return in 2025, rising from N0.66 to N1.21 per share, while trading volumes exceeded 6 billion shares. Management said the outlook remains positive for company.
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