The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc after the insurer failed to meet the revised minimum capital requirement for non-life insurance companies.
The revocation followed the conclusion of Nigeria’s insurance sector recapitalisation exercise, which required non-life insurers to meet a minimum capital threshold of ₦15 billion.
NAICOM also appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator for Universal Insurance.
The commission said the action was taken under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which empowers it to revoke the licence of an insurer that fails to address regulatory breaches within the stipulated period.
As receiver, Chukwumerije has been directed to trace, recover, secure and take possession of the company’s assets, assess its liabilities and facilitate their settlement in line with the provisions of NIIRA 2025.
He is also expected to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
Universal Insurance Appeals Revocation
Universal Insurance has, however, challenged the regulatory action.
A company spokesperson, Chinedu Onyilimba, confirmed the licence revocation and said the insurer had appealed the decision.
In a separate notice dated August 18, Chukwumerije informed banks, financial institutions, policyholders, creditors, debtors, customers and other members of the public that Universal Insurance had entered receivership.
He advised anyone dealing with the company’s funds, assets, records, policies, claims or liabilities to verify the authority of individuals claiming to represent the insurer.
Banks and other financial institutions were specifically cautioned against processing withdrawals, transfers, payment mandates or other instructions issued on behalf of Universal Insurance unless they were authorised by the receiver.
Insurer Had Sought to Raise Fresh Capital
Universal Insurance had previously announced measures to meet the recapitalisation requirement.
In February, its shareholders approved plans to raise up to ₦15 billion through a public offer, private placement, rights issue or other approved fundraising methods.
The company also disclosed that it had completed a ₦1.5 billion statutory deposit with the Central Bank of Nigeria, comprising an additional ₦1.165 billion and an earlier ₦335 million deposit.
Despite these efforts, Universal Insurance was among six insurers that failed to meet the July 31, 2026 recapitalisation deadline.
Under NIIRA 2025, the revised minimum capital requirements stand at ₦15 billion for non-life insurers, ₦10 billion for life insurers, ₦25 billion for composite insurers and ₦35 billion for reinsurers.
The recapitalisation exercise was aimed at strengthening the financial capacity of insurance companies, improving their ability to absorb risks and enhancing protection for policyholders.
Following the licence revocation, shares of Universal Insurance fell by 9.41 per cent on the Nigerian Exchange (NGX), closing at ₦0.77 from ₦0.85 previously.
The development places the company’s operations, outstanding claims and other liabilities under the control of the appointed receiver, subject to the ongoing regulatory and legal processes.
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