Universal Insurance Plans N3.2 Billion Rights Issue
Universal Insurance Plc has officially announced its intention to pursue a rights issue valued at N3.2 billion. During a signing ceremony in Lagos, the insurance firm finalized transaction documents for the initiative, signaling the completion of the pre-offer phase. This step allows existing shareholders to engage in the financing process ahead of an anticipated market launch in the coming weeks, contingent upon final approval from the Securities and Exchange Commission (SEC).
Details of the Rights Issue
Under the proposed share acquisition rights issue, Universal Insurance plans to offer 2,666,666,667 ordinary shares, each priced at 50 kobo, at a rate of N1.20 per share. This offer is structured so that shareholders will receive one new ordinary share for every six ordinary shares they currently hold.
Eligibility Criteria for Shareholders
The company has specified that only shareholders whose names appear on the membership register as of the close of business on March 30, 2026, will be eligible to participate in this offering.
Company Growth and Future Prospects
During the event, Universal Insurance’s Chairman Jasper Osita Nduagwike emphasized the company’s consistent growth over the past five years and expressed optimism for its future. He positioned the rights issue as a compelling investment opportunity, underlining the firm’s six-decade resilience in the Nigerian insurance landscape.
Resilience and Industry Standing
Nduagwike affirmed the strength of Universal Insurance, remarking, “We have a very strong foundation. For a company that has spent more than 60 years in the industry, weathered economic cycles and industry challenges, and remains in a strong position, that speaks volumes about our resilience.”
A Legacy of Stability
The chairman noted that Universal Insurance was established in the early 1960s and remains one of the few companies from that era still thriving and expanding in the sector. He stated that ongoing recapitalization efforts will further bolster the company’s competitiveness and enhance its market share.
Call to Action for Stakeholders
Nduagwike encouraged stakeholders and shareholders to support the proposal, advocating for applications to be oversubscribed. If fully subscribed, this capital increase is expected to strengthen the company’s financial foundation, enhance its underwriting capabilities, and drive strategic growth initiatives aimed at boosting operational efficiency and expanding its market footprint.
