NAICOM revokes Universal Insurance licence over N15bn capital

The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc after the insurer failed to meet the N15 billion minimum capital requirement for non-life insurers, ending its participation in the recapitalisation exercise and placing the company under receivership.

The licence revocation took effect on August 14, 2026, according to a notice dated August 13 and confirmed by NAICOM.

The commission also appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of the company.

Under the directive, Chukwumerije is to immediately trace, recover, secure and take possession of Universal Insurance’s assets, determine its liabilities and facilitate settlement in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

He is also required to liaise with NAICOM and provide periodic reports on the progress of the receivership and liquidation process.

Universal Insurance has, however, appealed the commission’s decision.

The company’s spokesman, Chinedu Onyilimba, confirmed receipt of the revocation notice, saying the board had filed an appeal with NAICOM.

“Yes, we got that notice on Friday. But we appealed on that. The only thing is that we appealed. The board of NAICOM is meeting now. So, after that meeting, we will have something to say,” he said.

The appeal means the company’s immediate future will depend on the outcome of the regulatory review and any subsequent legal processes.

In a separate public notice issued on August 18, the receiver informed banks, financial institutions, policyholders, creditors, debtors, customers and other stakeholders that Universal Insurance had formally entered receivership.

He warned anyone dealing with the company’s funds, assets, records, policies, claims or liabilities to verify the authority of persons purporting to act on behalf of Universal Insurance.

Banks and other financial institutions were specifically directed not to honour withdrawals, transfers, payment mandates or other instructions issued on behalf of the insurer unless authorised by the receiver.

The action comes after Universal Insurance failed to secure NAICOM’s confirmation of compliance with the new capital regime by the July 31, 2026 deadline.

The company had pursued several measures to raise capital. In February, shareholders approved a plan to raise up to N15 billion through a public offer, private placement, rights issue or other approved fundraising options.

Universal Insurance 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, the insurer remained among the six companies that failed to meet the recapitalisation deadline.

The wider exercise raised about N720 billion, with 48 insurance companies and two reinsurance companies eventually verified as compliant by NAICOM.

Under NIIRA 2025, the new minimum capital thresholds are N15 billion for non-life insurers, N10 billion for life insurers, N25 billion for composite insurers and N35 billion for reinsurers.

NAICOM said the recapitalisation exercise was designed to strengthen insurers’ financial capacity, improve their ability to absorb risks and enhance protection for policyholders.

The regulatory action has also begun to affect Universal Insurance’s market valuation.

Its shares traded at N0.77 on Wednesday, down 9.41 per cent from N0.80 on Tuesday, despite the company’s shares remaining listed on the Nigerian Exchange.

For Universal Insurance, the recapitalisation exercise has therefore moved from a capital-raising challenge to a regulatory and legal battle, with the outcome now critical for its shareholders, policyholders, creditors and other stakeholders.