Sovereign Trust Insurance Plc has obtained its official Recapitalisation Certificate from the National Insurance Commission, marking a major regulatory milestone for the insurer.

The certificate confirms the company’s compliance with the Federal Government’s ongoing recapitalisation programme aimed at strengthening the financial resilience and stability of Nigeria’s insurance industry.

Issued after STI met NAICOM’s recapitalisation requirements, the certificate is expected to enhance the insurer’s financial capacity, operational resilience and underwriting capabilities, while providing greater protection for policyholders and supporting long-term value creation for shareholders.

The milestone comes amid broader regulatory reforms by NAICOM aimed at transforming Nigeria’s insurance industry. In recent years, the commission has raised capital requirements across the sector to strengthen the financial position of insurers, eliminate financially weak underwriters, boost domestic risk-retention capacity, curb capital flight and restore public confidence in the industry.

By meeting the regulatory thresholds, Sovereign Trust Insurance has positioned itself among insurers with the financial capacity to underwrite large-ticket risks across critical sectors of the economy, including energy, oil and gas, marine, aviation and infrastructure.

Reacting to the development, the Managing Director and Chief Executive Officer of Sovereign Trust Insurance Plc, Dr Lucas Durojaiye, said the regulatory approval reflected the company’s strategic focus and the strong support it had received from its stakeholders.

“The receipt of our recapitalisation certificate from NAICOM is a significant milestone for Sovereign Trust Insurance Plc. It reflects the strength of our business, the confidence of our shareholders, and the dedication of our Board and employees to building a stronger and more resilient insurance institution,” Durojaiye said.

“This achievement positions us for the next phase of our growth journey. We remain committed to strengthening our capacity to underwrite risks, deepening our market presence, enhancing our service delivery, and creating greater value for our policyholders and stakeholders.”

Industry analysts have identified recapitalisation as a critical priority for Nigerian insurers navigating macroeconomic pressures, including high inflation and currency volatility. Stronger capital positions give insurers greater capacity to invest in digital technologies, expand distribution networks and meet claims obligations efficiently.

Sovereign Trust Insurance said the certification further reinforces its commitment to sound corporate governance, operational efficiency and the delivery of tailored insurance solutions to individuals, businesses and public institutions.