Key Points
- NAICOM revoked Universal Insurance Plc’s registration after the insurer failed to meet the required minimum capital for its licence category.
- The commission appointed Ogbonna Chukwumerije as receiver/provisional liquidator to manage the insurer’s affairs.
- The cancellation came as Universal was pursuing a proposed N7.12bn investment to strengthen its capital position.
Main Story
The National Insurance Commission (NAICOM) has withdrawn the operating licence of Universal Insurance Plc after the company failed to meet the minimum capital requirement applicable to its licence category.
The commission said the cancellation took effect on Aug. 14, following a notice issued to the company’s board on Aug. 13.
NAICOM said the action was taken under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which provides the regulatory framework governing the insurance industry.
Following the cancellation, the commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver and provisional liquidator for Universal Insurance.
Chukwumerije subsequently notified the insurer’s policyholders, creditors, debtors, banks and other stakeholders that he had assumed responsibility for the company.
He said his role would include managing the insurer’s affairs and taking measures to safeguard its assets during the process.
The receiver also directed banks and other financial institutions to recognise only instructions issued or authorised by him in transactions involving Universal Insurance.
He further called on individuals and organisations holding the company’s funds, assets, records, policies or claims to cooperate with the receivership process and provide information when requested.
‘Capital raise did not prevent cancellation’
The regulatory action came shortly after Universal Insurance disclosed plans to raise fresh capital through a proposed private placement.
In a filing with the Nigerian Exchange Limited on Aug. 14, the insurer announced a proposed N7.12bn investment from FPNG Co-Nvest Limited.
The transaction was expected to make FPNG the company’s majority shareholder, with a 50.1 per cent stake.
Universal had said the proposed investment would lift its capital above NAICOM’s required threshold and improve its financial position.
The company also disclosed that its board and shareholders had approved the transaction, while discussions with NAICOM and other regulators were ongoing.
The insurer said the proposed capital injection was intended to strengthen its solvency and enable it to satisfy the regulator’s recapitalisation requirement.
However, the proposed transaction did not prevent NAICOM from cancelling the company’s registration, with the revocation taking effect on Aug. 14.
The Issues
The cancellation highlights the regulatory pressure on insurers to meet minimum capital requirements under Nigeria’s updated insurance framework.
For Universal Insurance, the development also raises questions about the status of its proposed capital injection and whether the transaction can proceed or have any bearing on the regulatory action already taken.
The appointment of a receiver and provisional liquidator means the company’s assets, records, policies and financial affairs will now be handled under the regulatory process.
What’s Being Said
NAICOM said Universal Insurance had failed to satisfy the minimum capital requirement for its licence category, leading to the cancellation of its registration.
Chukwumerije said he had assumed responsibility for the insurer’s affairs and called on stakeholders dealing with the company to cooperate with the receivership process.
Universal had previously maintained that its proposed N7.12bn investment would take its capital above the regulatory threshold, while noting that the transaction remained subject to engagement with NAICOM and other regulators.
What’s Next
The receiver and provisional liquidator will oversee Universal Insurance’s affairs and take steps relating to the company’s assets and obligations.
Stakeholders with interests in the insurer are expected to deal with the receiver in matters covered by the receivership process.
The status and implications of Universal’s proposed capital injection will also remain relevant as the regulatory process unfolds.
Bottom Line
NAICOM has cancelled Universal Insurance Plc’s registration over its failure to meet the required minimum capital, despite the insurer’s ongoing effort to secure a N7.12bn investment aimed at strengthening its capital position.
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