National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc over its failure to meet the revised minimum capital requirement for non-life insurers following the recently concluded insurance sector recapitalisation exercise.
Universal Insurance Plc is 65 years old, having being established in 1961 by the then Eastern Nigeria Government and African Continental Bank Plc, in partnership with Pearl Assurance Company of London and the Eastern Nigeria Development Corporation.
With the revocation of the license, NAICOM has also appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of the insurance company.
The action was taken under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which empowers NAICOM to revoke the licence of an insurer that fails to correct regulatory breaches within the prescribed period.
The receiver has been directed to immediately trace, recover, secure and take possession of Universal Insurance’s assets, collate its liabilities and facilitate their settlement in accordance with the provisions of NIIRA 2025.
He is also required to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
However, Universal Insurance was said to have appealed the decision.
Chinedu Onyilimba, spokesperson with the company, confirmed the revocation to Nairametrics but said the company had challenged the action.
In a separate notice dated August 18, Chukwumerije informed banks, financial institutions, policyholders, creditors, debtors, customers and members of the public that Universal Insurance had entered receivership.
He advised parties dealing with the company’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone claiming to act on its behalf.
Banks and other financial institutions were specifically warned against honouring withdrawals, transfers, payment mandates or other instructions issued on behalf of Universal Insurance unless authorised by the receiver.
The insurer had previously taken steps to meet the recapitalisation requirement. In February, shareholders approved plans to raise up to N15 billion through a public offer, private placement, rights issue or other approved fundraising options.
The company 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 the efforts, Universal Insurance was among six insurers that failed to meet the July 31, 2026 recapitalisation deadline.
Under NIIRA 2025, minimum capital requirements were raised to N15 billion for non-life insurers, N10 billion for life insurers, N25 billion for composite insurers and N35 billion for reinsurers.
The recapitalisation exercise was designed to strengthen insurers’ financial capacity, improve risk absorption and enhance policyholder protection.
