Universal Insurance Seeks Fresh Capital Through 2.67 Billion Share Rights Offer

Universal Insurance Plc has launched a rights issue of 2.67 billion ordinary shares valued at approximately N3.2 billion as the insurance company moves to strengthen its capital base and support future business expansion.

The company disclosed that the offer consists of 2,666,666,667 ordinary shares of 50 kobo each at N1.20 per share on the basis of one new ordinary share for every six ordinary shares held by shareholders as of the close of business on March 30, 2026.

According to the terms of the offer, the acceptance list opened on May 13, 2026, and will close on June 10, 2026.

Universal Insurance stated that the rights issue is fully tradable on the floor of the Nigerian Exchange Limited throughout the offer period, allowing shareholders to trade their rights partially or in full before the closing date.

The insurer explained that rights circulars have been distributed to qualified shareholders, while investors interested in accepting or renouncing their rights are required to complete the official acceptance form attached to the rights circular.

The company added that completed forms, alongside payment or evidence of payment, must be submitted to the issuing house or designated receiving agents before the June 10 deadline.

Universal Insurance noted that any provisional allotment not paid for before the deadline would be deemed declined and subsequently cancelled.

The company also stated that shareholders seeking to purchase additional shares above their provisional allotment may apply through the additional shares section contained in the acceptance form. Any unsubscribed shares after the close of the offer will be allotted on a pro-rata basis to shareholders who applied for additional shares.

Management further disclosed that the Central Securities Clearing System accounts of successful shareholders would be credited shortly after allotment.

The insurer advised shareholders to provide valid Clearing House Numbers and CSCS account details to ensure seamless electronic allotment and settlement of shares.

The company obtained provisional approval from the Nigerian Exchange for trading in the rights between May 13 and June 10, 2026.

Analysts said the capital raise aligns with ongoing recapitalisation efforts within Nigeria’s insurance sector as operators strengthen their balance sheets to improve underwriting capacity, regulatory compliance and long-term competitiveness in the financial services industry.