Uganda’s NIC Holdings Ltd has received a fresh capital injection of Ush4.13 billion ($1.12 million) from shareholders to support its operations, as a rights issue approved more than three years ago remains delayed.

 

The insurer said in its 2025 annual report that the additional capital was injected into its wholly owned subsidiary, NIC Life Assurance Company Ltd, to strengthen its balance sheet, settle legacy obligations and restore stakeholder confidence.“NIC Holdings remains committed to its strategic objective of becoming a preferred provider of insurance and financial services in Uganda and across East Africa,” the insurer said.

“In 2025, shareholders injected Ush4.13 billion ($1.12 million) into NIC Life to strengthen its balance sheet, settle legacy obligations, and restore stakeholder confidence.”The life insurance business continues to face capital adequacy challenges.“Although the life business closed the year below the regulatory Capital Adequacy Ratio threshold, management has implemented a recovery strategy focused on profitability, capital adequacy, and operational efficiency,” the company said.

The shareholder funding comes as a long-delayed capital-raising plan remains incomplete. Shareholders approved an increase in the group’s authorised share capital from Ush13 billion ($3.52 million) to Ush31 billion ($8.41 million) at the company’s 21st annual general meeting on July 14, 2022.

They also approved raising the paid-up share capital from Ush10.61 billion to as much as Ush30.22 billion through the creation of new ordinary shares with a par value of Ush5 ($0.001) each. The shares were to be offered to existing shareholders through a rights issue, with any remaining shares made available to the public at a price to be determined by the board.

However, the company said the offer had yet to proceed.“The Rights Issue process could not be completed in 2025. The Board will decide on the appropriate date for the offer,” it said.

NIC Holdings is 64.95 percent owned by Industrial General Insurance (IGI) Plc through its special purpose vehicle, Corporate Holdings Ltd. IGI has announced plans to transfer its entire stake to Cornerstone Asset Managers Ltd after more than a decade as the insurer’s majority shareholder.

The transaction, first announced on April 23, 2025, remains subject to regulatory approvals. As of December 31, 2025, IGI Plc, incorporated in Nigeria, remained the ultimate holding company.

Profit reversalNIC Holdings posted a net loss of Ush1.52 billion ($412,417) in 2025, reversing a profit of Ush477.2 million ($129,477) a year earlier. The decline was largely driven by a Ush3.04 billion loss on the disposal of investment property.

The company said the sale of two investment properties in Kampala and Mbale was intended to optimise its asset portfolio and improve liquidity.

NIC Life Assurance reduced its net loss to Ush1.11 billion ($301,173) from Ush1.43 billion ($387,998) in 2024. However, earnings from the general insurance business fell to Ush519.65 million ($140,995), down from Ush2.17 billion ($588,780) the previous year.“The board remains confident in the ability of the group’s businesses to continue operating as going concerns and to create long-term value while building a more sustainable future to all stakeholders,” the insurer said.

NIC Holdings traces its origins to the National Insurance Corporation, established under the National Insurance Corporation Act of 1964. The company was incorporated as National Insurance Corporation Ltd in November 2000.

It was privatised in 2005 when IGI Plc acquired a 60 percent stake through Corporate Holdings Ltd. The government sold its remaining 40 percent stake through an initial public offering in 2010, paving the way for the company’s listing on the Uganda Securities Exchange.

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