The National Insurance Commission (NAICOM) has cancelled the operating licence of Universal Insurance Plc after the insurer failed to meet the minimum capital requirement for its category.
The cancellation took effect on August 14, 2026, according to a notice issued by the commission to the company’s board on August 13.
NAICOM said the action was taken pursuant to its powers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, following Universal Insurance’s failure to satisfy the prescribed capital threshold.
The commission has subsequently appointed Mr Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver/provisional liquidator to take charge of the insurer’s affairs.
In a notice dated August 18, Chukwumerije informed Universal Insurance’s policyholders, creditors, debtors, banks and other stakeholders that he had assumed responsibility for the company and would oversee its affairs during the process.
The receiver/provisional liquidator said steps would be taken to safeguard the company’s assets and ensure proper management of its affairs.
He directed banks and other financial institutions to recognise only instructions issued or authorised by him in respect of Universal Insurance’s accounts and transactions.
Chukwumerije also called on individuals and organisations holding the company’s funds, assets, records, insurance policies or claims to cooperate with the process and provide any relevant information required.
Capital Injection Fails to Save Insurer
The regulatory action came despite Universal Insurance’s efforts to raise additional capital to meet NAICOM’s requirements.
In a market update filed with the Nigerian Exchange Limited (NGX) on August 14, the insurer disclosed plans for a ₦7.12 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 per cent stake.
Universal Insurance had said the proposed capital injection would push its capital base above NAICOM’s regulatory threshold 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 company said.
The insurer disclosed that the necessary board and shareholder approvals for the proposed transaction had been obtained, while noting that the deal remained subject to further engagement with NAICOM and other relevant regulators.
Despite the proposed ₦7.12 billion capital injection, NAICOM proceeded with the cancellation of the insurer’s certificate of registration, paving the way for the appointment of the receiver/provisional liquidator to take control of the company’s affairs.
