Linkage Assurance Completes N16.2bn Rights Issue to Meet NAICOM Capital Deadline
Linkage Assurance Plc announced on Monday that it has completed a N16.2 billion Rights Issue, meeting the National Insurance Commission's new minimum capital requirement ahead of the July 31, 2026 deadline. The offer, which opened on March 11 and closed on April 23, was fully subscribed, with the Securities and Exchange Commission approving the allotment and the newly issued shares now listed on the Nigerian Exchange.
The capital raise was driven by the Nigerian Insurance Industry Reform Act of 2025, which raised the minimum capital for non-life insurers from N3 billion to N15 billion. Linkage Assurance says the proceeds will satisfy this requirement and support its long-term growth strategy, enabling better service to shareholders and policyholders.
Although the company reported a pre-tax profit of N4.3 billion for 2025—down from N5.2 billion the previous year—insurance revenue rose 24.1% to N27.5 billion and premium income grew 15.8% to N27.8 billion, indicating stronger underwriting activity.
For investors, the successful rights issue signals confidence in the firm's management and governance. For policyholders, a stronger capital base should improve claims-paying ability. Industry watchers should note that all non-life insurers must meet the N15 billion threshold by the end of July, which could reshape the competitive landscape.