Linkage Assurance Plc has successfully completed a N16.2 billion Rights Issue to meet the National Insurance Commission’s minimum capital requirement ahead of the July 31, 2026 deadline.

Nairametrics reported that the company disclosed this in a statement signed by its Company Secretary, Moses Omorogbe, on Monday.

The Rights Issue, which opened on March 11, 2026, and closed on April 23, 2026, was undertaken in response to NAICOM’s recapitalisation directive for insurance operators.

According to the company, the Securities and Exchange Commission (SEC) has approved the allotment of all shares offered under the Rights Issue, while the newly issued shares have also been listed on the Nigerian Exchange Limited (NGX).

“Linkage Assurance Plc is pleased to announce the successful completion of its N16.2 billion Rights Issue, which opened on March 11, 2026, and closed on April 23, 2026. Following the approval of the Securities and Exchange Commission (SEC), all the shares have been allotted to the subscribers of the Rights Issue, and the shares have been listed on the Nigerian Exchange Limited (NGX),” the company stated.

It added that the capital raise was executed in line with NAICOM’s directive on the recapitalisation of insurance companies operating in Nigeria.

The insurer said proceeds from the offer will be used to satisfy the new minimum capital requirement and support business expansion initiatives aligned with its long-term growth strategy.

The capital raising comes amid sweeping reforms in Nigeria’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act, 2025.

Signed into law by President Bola Ahmed Tinubu in August 2025, the legislation significantly increased the minimum capital thresholds for insurance operators.

Under the new framework, non-life insurers are required to raise their capital base from N3 billion to N15 billion, life insurers from N2 billion to N10 billion, while reinsurers must increase capital from N10 billion to N35 billion.

The law also introduced additional policyholder protection measures, including stricter claims settlement timelines and the establishment of support mechanisms for policyholders in the event of insurer insolvency.

NAICOM granted insurance companies a one-year transition period to comply with the new requirements, with July 31, 2026 set as the deadline.

Linkage Assurance noted that the Rights Issue was fully subscribed, reflecting investor confidence in the company’s management, governance standards, financial performance, and strategic direction.

“The conclusion of the capital-raising, which was fully subscribed, reflects the continued confidence of stakeholders in the Company’s Board and Management, governance, financial performance, and strategic direction. The Company remains committed to full regulatory compliance and prudent risk management,” the company said.

It added that its strengthened capital position would enable it to deliver enhanced services to customers while creating sustainable value for shareholders.

The successful fundraising means the company has now met the N15 billion minimum capital requirement for non-life insurers under the Nigerian Insurance Industry Reform Act, 2025.

Linkage Assurance reported a pre-tax profit of N4.3 billion for the 2025 financial year, according to its audited results filed with the Nigerian Exchange.

The figure represents a decline from the N5.2 billion recorded in the previous year.

Despite the drop in profit, the company posted strong revenue growth, with insurance revenue rising by 24.1% year-on-year to N27.5 billion, compared with N22.2 billion in 2024.

Premium income also increased by 15.8% to N27.8 billion, while claims paid climbed to N5.9 billion, reflecting increased underwriting activity during the year.