The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc after the insurer failed to meet the minimum capital requirement for its licence category, throwing the company’s operations into regulatory turmoil.
NAICOM cancelled Universal Insurance’s certificate of registration with effect from August 14, 2026, according to a notice issued to the company’s board on August 13.
The commission invoked its powers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to withdraw the insurer’s registration after it failed to satisfy the required capital threshold.
In a move signalling the seriousness of the regulatory action, NAICOM also appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver/provisional liquidator to take control of the insurer’s affairs.
Chukwumerije, in a notice issued on August 18, informed Universal Insurance’s policyholders, creditors, debtors, banks and other stakeholders that he had formally assumed responsibility for the company.
He said his mandate was to oversee the insurer’s affairs and take necessary steps to safeguard its assets during the process.
The receiver/provisional liquidator also warned banks and other financial institutions to recognise only instructions issued or expressly authorised by him in transactions involving Universal Insurance.
He further directed individuals, institutions and other parties holding the company’s funds, assets, records, insurance policies or claims to cooperate with the process and provide information required for the administration of the insurer.
The regulatory hammer fell despite Universal Insurance’s attempt to raise fresh capital and shore up its financial position.
In a market update filed with the Nigerian Exchange Limited (NGX) on August 14, Universal disclosed a proposed N7.12 billion investment by FPNG Co-Nvest Limited through a private placement.
The proposed transaction was expected to make FPNG the majority shareholder in Universal Insurance, with a 50.1 percent stake.
Universal had said the capital injection would push it above NAICOM’s minimum capital requirement and strengthen its solvency position.
“The Board and Management of the Company is progressing with engagements with the National Insurance Commission (NAICOM) and other relevant regulators regarding the Transaction,” the insurer said in the market update.
The company disclosed that the necessary board and shareholder approvals for the transaction had been secured, but acknowledged that regulatory engagement with NAICOM and other authorities was still required.
However, the planned capital injection failed to prevent NAICOM from cancelling the insurer’s registration.
The development leaves Universal Insurance facing a major regulatory reckoning, with the receiver/provisional liquidator now responsible for managing its affairs and protecting the interests of policyholders, creditors and other stakeholders.
The action also underscores the regulator’s increasingly firm stance on capital adequacy, as insurers that fail to meet prescribed financial requirements face the prospect of losing their licences regardless of ongoing attempts to recapitalise.
For Universal Insurance, the proposed N7.12 billion rescue investment now faces a new reality: the company’s licence has been cancelled and its affairs placed under the control of a receiver/provisional liquidator.
