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The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc after the insurer failed to satisfy the new minimum capital requirement for non-life insurance companies under Nigeria’s ongoing insurance-sector reforms.
The cancellation took effect on August 14, 2026, according to a notice dated August 13 and addressed to the chairman of Universal Insurance’s board. NAICOM exercised its powers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 in taking the action.
Receiver Appointed to Take Control
Following the licence cancellation, NAICOM appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of Universal Insurance.
His mandate includes tracing, recovering and securing the insurer’s assets, taking control of those assets, identifying its outstanding liabilities and facilitating their settlement in accordance with NIIRA 2025.
The receiver is also expected to work with NAICOM and provide periodic reports on developments throughout the receivership and liquidation process.
Banks, Policyholders and Creditors Put on Notice
In a separate public notice issued on August 18, Chukwumerije formally announced the commencement of the receivership to banks, financial institutions, policyholders, creditors, debtors, customers and members of the public.
Financial institutions were advised not to honour withdrawal requests, transfers, payment instructions or other mandates issued on behalf of Universal Insurance unless they were authorised by the receiver.
The notice also warned parties dealing with the company’s assets, records, policies and liabilities to verify the authority of anyone claiming to represent the insurer during the liquidation process.
Universal Insurance Had Been Raising Capital
The regulatory action comes shortly after Universal Insurance disclosed that it was pursuing additional capital to meet the recapitalisation requirement.
On August 14, the company informed the Nigerian Exchange Limited (NGX), shareholders and the investing public that it had entered into a binding investment agreement with FPNG Co-Nvest Limited.
Under the agreement, FPNG was expected to invest ₦7.128 billion in Universal Insurance through a private placement in exchange for additional shares in the company.
The insurer had also recently conducted a rights issue, offering existing shareholders 2.666 billion ordinary shares of 50 kobo each at ₦1.20 per share.
The offer, which opened on May 13 and closed on June 10, 2026, was structured on the basis of one new share for every six existing shares held by qualifying shareholders as of March 30, 2026.
Regulatory Enforcement Follows Recapitalisation Deadline
Universal Insurance’s licence revocation follows NAICOM’s completion of the industry’s major recapitalisation exercise.
The regulator had introduced higher minimum capital thresholds under NIIRA 2025, requiring insurers to strengthen their financial capacity within the stipulated compliance period.
NAICOM’s August 2 announcement said the recapitalisation exercise had been completed, with 43 insurance companies verified as meeting the new requirements, while additional firms remained subject to final verification.
The regulator has made clear that operators failing to satisfy the applicable capital requirements could face regulatory measures, including liquidation or other resolution options.
Second Major Licence Revocation
Universal Insurance’s action follows the earlier revocation of the operating licence of Nigeria Reinsurance Corporation, which also failed to meet the minimum capital requirement applicable to its licence category.
NAICOM subsequently appointed Muiz Banire, SAN, as receiver/provisional liquidator for Nigeria Reinsurance.
The developments signal that the recapitalisation exercise has moved beyond capital-raising and verification into an enforcement phase, with non-compliant operators facing increasingly direct regulatory consequences.
Universal Insurance Appeals Decision
Despite the regulator’s action, Universal Insurance has indicated that the matter is not necessarily settled.
The company’s spokesman, Chinedu Onyilimba, confirmed the licence revocation but said the company had appealed the decision and was awaiting the outcome of the regulatory process.
The appeal could therefore become an important factor in determining the insurer’s immediate future as the receivership process proceeds.
Impact on Investors and Policyholders
The development also carries significant implications for Universal Insurance’s shareholders and other stakeholders.
BusinessDay reported that the company’s market value stood at about ₦13.6 billion before the licence revocation, while its shares fell sharply in early trading on August 19.
For policyholders and creditors, attention will now shift to the receiver’s assessment of Universal Insurance’s assets and liabilities and the process for resolving outstanding obligations.
For the wider insurance industry, the episode represents another indication that NAICOM is prepared to enforce the new capital regime against operators unable to satisfy the prescribed financial requirements.
