• Sunu Assurances Nigeria plans an urgent capital increase to meet new NAICOM thresholds

• Nigeria raised minimum capital requirements for insurers and reinsurers in 2025

• The company remains under a closed trading period pending board decisions

Sunu Assurances Nigeria, a subsidiary of Sunu Group, has called a board meeting for February 9 to urgently decide on a capital increase, the company said in a Feb.4 note.

The planned capital increase is primarily aimed at complying with requirements set by the National Insurance Commission (NAICOM). In 2025, the regulator granted insurance and reinsurance companies a 12-month deadline to align with new minimum capital thresholds, failing which their licenses could be withdrawn.

Under the new framework, the minimum capital required for life insurance companies has been raised from 2 billion to 10 billion naira ($1.5 million to $7.3 million). For non-life insurers, the threshold increases from 3 billion to 15 billion naira. Reinsurance companies are required to raise their minimum capital from 10 billion to 35 billion naira. The reform aims to strengthen insurers’ financial resilience and improve their ability to meet policyholder obligations.

Beyond regulatory compliance, the planned recapitalization is expected to enhance Sunu Assurances Nigeria’s risk coverage capacity, support its long-term growth ambitions, and better address demand in Nigeria’s expanding insurance market. The market remains relatively underdeveloped compared with other major African economies.

According to the 2024 report of the African Insurance Organization, Nigeria accounted for only 2.1% of insurance premiums issued across the continent in 2023, compared with 68.2% for South Africa, 8.7% for Morocco, 4% for Egypt, and 3.9% for Kenya. In 2024, insurance companies operating in Nigeria generated combined revenue of 1,562 billion naira, according to data from the Nigerian Insurers Association.

Pending the outcome of the board meeting, the insurer said a closed period has been in effect since January 1, 2026. Under financial market rules, this measure prohibits executives, insiders, and their close relatives from trading in the company’s securities. The restriction will remain in place until 24 hours after the official publication of the board’s resolutions and the audited financial statements for the year ended December 31, 2025.

Sandrine Gaingne