Sunu Assurance Plc has been authorized by shareholders to issue N9.34 billion in rights as the company seeks to meet the recapitalisation threshold set by the regulator.
The share capital of the company is hereby increased from N2.90 billion divided into 5.80 billion ordinary shares of 50 kobo each to N3.94 billion divided into 7.88 billion ordinary shares of 50 kobo each by the creation of 2.07 billion new ordinary shares of 50 kobo each.
Analysts say proceeds of the money raised by Sunu Assurance will be used to fund the recapitalization requirements.
According to the National Insurance Commission (NAICOM), Life insurance companies must raise their capital from N2 billion to N10 billion, non-life insurers from N3 billion to N15 billion, and reinsurance firms from N10 billion to N35 billion, representing a hike of up to 500 per cent.
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