The insurance company Linkage Assurance Plc has announced plans to raise ₦16 billion in additional capital, a move designed to strengthen its financial position and underwrite its growth ambitions. The fresh funds will be sought through a combination of equity options such as private placements, a rights issue, or public offering, depending on market conditions and subject to regulatory approvals.
As part of the process, the company will also raise its authorised share capital to accommodate the issuance of the new shares. These new shares will rank equally with existing ordinary shares and will be registered with the relevant regulatory bodies including the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Nigerian Exchange Limited (NGX).
This move comes at a critical time for Nigeria’s insurance sector, which is undergoing a sweeping recapitalisation under the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025). The reform law has raised minimum capital requirements significantly: non-life insurers must now hold at least ₦15 billion, life insurers ₦10 billion, composite insurers ₦25 billion, and reinsurers ₦35 billion.
According to the regulatory timeline, existing firms have a limited window, twelve months from the law’s enactment, to meet the new thresholds, or risk regulatory sanctions including loss of licence or operational downgrade.
For Linkage Assurance, raising ₦16 billion could not have been more timely. The company has been posting encouraging growth. For instance, in its latest financial year (2024), it reported a 50% jump in revenue, rising to ₦22.2 billion from ₦14.84 billion the previous year. While profit before tax dipped slightly from ₦5.5 billion in 2023 to ₦5.3 billion in 2024, the firm’s total assets rose considerably, from ₦51.33 billion to ₦65.68 billion.
In the first nine months of 2025 alone, Linkage Assurance recorded insurance revenue of ₦19.299 billion, up from ₦16.43 billion in the same period last year, a 17% increase. The insurance service result also improved significantly, reaching ₦962.02 million, a healthy sign of underwriting performance.
However, despite growth in premium income, the company’s bottom line has felt pressure from rising claims and economic headwinds, including foreign-exchange volatility and reduced investment income.
By raising fresh capital, Linkage Assurance aims to fortify its balance sheet, improve regulatory capital adequacy, and position itself to underwrite larger and more lucrative risks. The injection of new capital will also likely enhance its claim-settling capacity and support expansion into lines such as oil & gas, marine, fire, motor, and general accident underwriting, segments the company has previously identified as drivers of growth.
Observers interpret this capital raise not just as a compliance exercise, but as a strategic repositioning. Meeting or exceeding the new thresholds under NIIRA 2025 can strengthen investor confidence, signal financial resilience, and boost underwriting capacity, all of which could make Linkage Assurance a more competitive player in Nigeria’s evolving insurance landscape.
Looking ahead, if the capital raise is successful and management continues to execute prudently, Linkage Assurance could emerge stronger with enhanced capacity to navigate economic headwinds, meet obligations, and capture growing demand for insurance as regulation, awareness, and market participation expand across Nigeria.
With Nigeria’s broader insurance sector requiring firms to meet new, higher capital thresholds under NIIRA 2025, this ₦16 billion raise by Linkage Assurance reflects broader structural strengthening. A more capitalised insurance industry can boost investor confidence, enhance solvency, and support underwriting of large-scale commercial risks, stimulating capital flow and boosting economic stability.
