Linkage Assurance Plc has announced a capital raise of N16 billion to strengthen its balance sheet and support growth as competition intensifies in Nigeria’s insurance sector and across global emerging markets. The capital raise follows increasing regulatory and operational pressures facing insurers worldwide.
In a filing with the Nigerian Exchange, the company said its board has been authorised to execute the capital raise through private placement, rights issue, public offer, or any combination of these options, depending on market conditions and required approvals. Linkage Assurance noted that the capital raise is designed to increase financial resilience and improve long-term performance.
The board resolution confirmed that the company is empowered to raise N16 billion or any amount deemed appropriate by the directors through the chosen capital raise structure. The filing, signed by Company Secretary Moses Omorogbe, stated that the timing, pricing and terms of the capital raise will be determined by the board after completing regulatory processes.
As part of the capital raise, Linkage Assurance will expand its authorised share capital to create room for new shares that will be issued to investors locally and internationally. The company said the new shares from the capital raise will rank equally with existing ordinary shares and will be registered with the Securities and Exchange Commission, the Corporate Affairs Commission and the Nigerian Exchange.
The company added that its Memorandum and Articles of Association will be amended to reflect the updated structure required for the capital raise under Nigeria’s Companies and Allied Matters Act. This amendment ensures compliance with corporate governance standards recognised across global markets.
The board has also been authorised to appoint advisers, execute necessary documents, and complete all regulatory steps needed to implement the capital raise. Linkage Assurance confirmed that all previous actions taken by its board and management relating to the capital raise have been ratified to maintain continuity.
In its latest financial results for the quarter ended 31 March 2025, the insurer reported a pre-tax profit of N829.5 million, representing a 7.83% increase compared with the same period in 2024. The company said stronger revenue performance supported its earnings and reinforced the need for the planned capital raise.
Insurance revenue rose to N6.05 billion, up 18.2% from N5.1 billion a year earlier, with the oil and gas segment contributing N7.5 billion. Motor and fire insurance generated N5.07 billion and N3.7 billion respectively, while other business lines delivered the remaining earnings, highlighting the company’s diversified base as it prepares for the capital raise.
Linkage Assurance said the capital raise will be a key part of its medium-term strategy as insurers in Africa respond to rising risk exposures and global regulatory trends that require stronger solvency positions.
