Universal Insurance Plc has paid 1.5 billion naira as a statutory deposit to the Central Bank of Nigeria (CBN). This payment by Universal Insurance Plc is a major step in meeting the new “recapitalization” rules set by the National Insurance Commission (NAICOM), proving it has the cash needed to follow stricter laws designed to make the Nigerian industry more stable and secure for everyone.
Managing Director Ben Ujoatuonu confirmed that this payment is part of a larger plan to strengthen the company’s financial base.
He noted that they had successfully met one of the recapitalization requirements mandated under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, and the accompanying Minimum Capital Requirement (MCR) Guidelines issued by the National Insurance Commission (NAICOM)
Under the current rules, insurance firms must hold much higher levels of capital to ensure they can pay out large claims and survive economic shifts. By settling this legal requirement now, Universal Insurance aims to show customers and investors that it is financially healthy and ready to compete in a changing market.
To raise the remaining funds, Universal Insurance shareholders have authorized the board to pull in 15 billion naira through various methods, including rights issues and private placements. This move comes as the entire sector faces intense pressure to consolidate, with many smaller firms struggling to meet the new, much higher capital bars.
Analysts expect a “leaner but stronger” market to emerge by late 2026, as the regulator refuses to extend the deadline and insists on a “risk-based” approach where capital must match a company’s actual business exposure.
The successful deposit is a regulatory milestone, but the firm still needs to execute its capital-raising plan over the next five months to stay on the “compliant list” that NAICOM plans to publish on July 31, 2026.
For policyholders, these reforms are intended to solve long-standing issues with slow claims payments by ensuring that every licensed insurer has a deep financial pool to draw from. As the deadline nears, the focus in the industry remains on whether firms can actually turn their approved “plans” into real cash on their balance sheets.
. This payment by Universal Insurance Plc is a major step in meeting the new "recapitalization" rules set by the National Insurance Commission (NAICOM), proving it has the cash needed to follow stricter laws designed to make the Nigerian industry more stable and secure for everyone.){kind=link}