NAICOM revokes Universal Insurance licence over ₦15bn capital shortfall

NAICOM revokes Universal Insurance licence over ₦15bn capital shortfall

The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc and appointed a receiver/provisional liquidator to take control of the company and commence the process of winding up its affairs.

The Universal Insurance licence revocation took effect on August 14, 2026, following the insurer’s failure to meet the prescribed Minimum Capital Requirement (MCR) applicable to its category of business within the stipulated compliance period.

NAICOM conveyed the decision in a notice dated August 13 and addressed to the chairman of Universal Insurance’s board of directors. The commission said the action was taken under the powers granted to it by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

Under NIIRA 2025, existing insurers were required to meet significantly higher capital thresholds. For non-life insurance companies, the minimum capital requirement was raised to ₦15 billion, while life insurers are required to maintain at least ₦10 billion and reinsurers ₦35 billion. The law also empowers NAICOM to cancel an insurer’s licence where regulatory breaches are not remedied within the prescribed period. (NAICOM)

Following the licence cancellation, NAICOM appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of Universal Insurance.

According to the appointment letter dated August 14, Chukwumerije is required to immediately trace, recover, secure and take possession of the insurer’s assets. He is also mandated to collate the company’s liabilities and facilitate their settlement in accordance with NIIRA 2025.

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The receiver is further expected to liaise with NAICOM on information available to the commission and submit periodic reports on the progress of the receivership and liquidation process.

In a separate public notice dated August 18, 2026, Chukwumerije informed banks, financial institutions, policyholders, creditors, debtors, customers and members of the public that Universal Insurance had entered receivership.

He said his appointment followed NAICOM’s cancellation of the company’s licence over its failure to meet the applicable minimum capital requirement.

Chukwumerije said he was empowered under NIIRA 2025 and the terms of his appointment to assume management and control of Universal Insurance and take necessary steps to preserve, protect and realise its assets.

He also directed individuals and institutions dealing with the company’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone claiming to act on behalf of Universal Insurance.

Banks and other financial institutions were specifically advised not to honour or process any instruction, mandate, withdrawal, transfer or payment direction purportedly issued on behalf of the insurer unless it had been authorised by the receiver.

The regulatory action comes after Universal Insurance had made several efforts to raise fresh capital ahead of NAICOM’s recapitalisation deadline.

In February 2026, shareholders approved a plan authorising the company to raise up to ₦15 billion in fresh capital through options including a public offer, private placement, rights issue or other approved fundraising methods.

The company also announced that it had completed a ₦1.5 billion statutory deposit with the Central Bank of Nigeria (CBN) as part of the recapitalisation requirements. The payment consisted of an additional ₦1.165 billion alongside an earlier ₦335 million deposit. (The Guardian Nigeria)

Universal Insurance had expressed confidence that its recapitalisation efforts would enable it to meet NAICOM’s requirements. However, the subsequent licence cancellation indicates that the company did not satisfy the applicable MCR within the regulatory compliance period.

The development highlights the increasing pressure on insurance companies in Nigeria following the implementation of NIIRA 2025, which seeks to strengthen insurers’ financial capacity, improve risk absorption and enhance protection for policyholders.

For Universal Insurance policyholders, creditors and other stakeholders, the immediate process will now be managed through the receivership and liquidation framework, with the appointed receiver responsible for securing the company’s assets, determining its liabilities and taking steps required under the law.

The cancellation also underscores NAICOM’s determination to enforce the new insurance recapitalisation requirements, as insurers that fail to meet the revised capital thresholds face regulatory measures that can include licence cancellation, receivership, mergers or liquidation.

NAICOM revokes Universal Insurance licence over ₦15bn capital shortfall