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 insurance companies.
The action followed the conclusion of the insurance sector recapitalisation exercise and was taken pursuant to the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
NAICOM also appointed Mr Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of Universal Insurance.
The commission said the receiver had been directed to immediately trace, recover, secure and take possession of the assets of the insurance company.
He is also expected to collate the company’s liabilities and facilitate their settlement in accordance with the provisions of NIIRA 2025.
The receiver is further required to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
Universal Insurance, however, has appealed the decision.
Chinedu Onyilimba, spokesperson for the company, confirmed the revocation to Nairametrics, saying the insurer had challenged the action.
In a separate notice dated Aug. 18, Chukwumerije informed banks, financial institutions, policyholders, creditors, debtors, customers and members of the public that Universal Insurance had entered receivership.
He advised all parties dealing with the company’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone claiming to act on behalf of the insurer.
Banks and other financial institutions were specifically advised not to honour withdrawals, transfers, payment mandates or other instructions issued on behalf of Universal Insurance unless authorised by the receiver.
Universal Insurance, which is 65 years old, was 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.
The company had previously taken steps toward meeting the recapitalisation requirement.
In February, its shareholders approved plans to raise up to N15 billion through a public offer, private placement, rights issue or other approved fundraising options.
The insurer also disclosed that it had completed a N1.5 billion statutory deposit with the Central Bank of Nigeria (CBN).
The deposit comprised an additional N1.165 billion and an earlier N335 million statutory deposit.
Despite the measures, Universal Insurance was among six insurers that failed to meet the July 31, 2026 deadline for compliance with the revised minimum capital requirements.
Under NIIRA 2025, the minimum capital requirement was increased to N15 billion for non-life insurance companies, N10 billion for life insurers, N25 billion for composite insurers and N35 billion for reinsurers.
The recapitalisation exercise was aimed at strengthening the financial capacity of insurance companies, improving their ability to absorb risks and enhancing protection for policyholders.
The revocation means that the affairs and assets of Universal Insurance will now be subject to the receivership and liquidation process under the supervision of the receiver and in accordance with the applicable provisions of NIIRA 2025.
NAICOM’s action underscores the commission’s enforcement of the revised capital requirements introduced as part of efforts to strengthen Nigeria’s insurance industry and ensure that operators have adequate financial capacity to meet their obligations to policyholders.
