Universal Insurance Plc is moving to boost its capital base by raising about N3.2bn through a rights issue. The company has filed an application with the Nigerian Exchange Limited (NGX), via its stockbroker APT Securities and Funds Limited, for approval and listing of the proposed offer. It plans to issue 2,666,666,667 new ordinary shares at N1.20 each, with a face value of 50 kobo per share. The offer is structured at a ratio of one new share for every six shares held. Eligible shareholders must be on the company's register as of March 30, 2026. The move aims to strengthen the firm's balance sheet, expand underwriting capacity, and support long-term growth strategies. Full subscription would give the company added financial leverage to improve efficiency and competitiveness. NGX and other regulators must approve the application before the shares are listed.
A rights issue only benefits shareholders who can afford to buy more shares, leaving smaller investors behind. Universal Insurance's N3.2bn capital play assumes existing investors will step up, but many may lack the liquidity to participate. This widens the gap between big and small stakeholders in Nigeria's insurance sector. For most ordinary Nigerians, such moves are more about corporate survival than inclusive growth.
