The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc for failing to meet the revised minimum capital requirement for non-life insurers following the recently concluded insurance sector recapitalisation exercise.
NAICOM also appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of the insurance company.
The action was taken under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which empowers NAICOM to revoke the licence of an insurer that fails to address regulatory breaches within the prescribed period.
The receiver has been directed to immediately trace, recover, secure and take possession of the assets of Universal Insurance, collate its liabilities and facilitate their settlement in accordance with the provisions of NIIRA 2025.
He is also required to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
However, Universal Insurance has appealed the decision.
A spokesperson for the company, Chinedu Onyilimba, confirmed the revocation but said the insurer had challenged the action.
In a separate notice dated August 18, Chukwumerije informed banks, financial institutions, policyholders, creditors, debtors, customers and members of the public that Universal Insurance had entered receivership.
He advised all parties dealing with the company’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone claiming to act on behalf of the insurer.
Banks and other financial institutions were specifically warned against honouring withdrawals, transfers, payment mandates or other instructions issued on behalf of Universal Insurance unless such instructions were authorised by the receiver.
The insurer had previously taken steps to meet the recapitalisation requirement. In February, its shareholders approved plans to raise up to N15 billion through a public offer, private placement, rights issue or other approved fundraising options.
The company also disclosed that it had completed a N1.5 billion statutory deposit with the Central Bank of Nigeria, comprising an additional N1.165 billion and an earlier N335 million deposit.
Despite those efforts, Universal Insurance was among six insurers that failed to meet the July 31, 2026, recapitalisation deadline.
Under NIIRA 2025, minimum capital requirements were raised to N15 billion for non-life insurers, N10 billion for life insurers, N25 billion for composite insurers and N35 billion for reinsurers.
The recapitalisation exercise was designed to strengthen the financial capacity of insurance companies, improve their ability to absorb risks and enhance protection for policyholders.
Following the licence revocation, shares of Universal Insurance declined on the Nigerian Exchange (NGX), falling by 9.41 per cent to 0.77 kobo from the previous day’s 0.85 kobo.
