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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 following its failure to meet the new minimum capital requirement for non-life insurers.
The licence cancellation took effect on August 14, 2026, according to a notice dated August 13 and addressed to the chairman of Universal Insurance’s board, which was confirmed by NAICOM.
The action was taken pursuant to the powers conferred on NAICOM by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which empowers the commission to cancel the licence of an insurer that fails to remedy regulatory breaches within the prescribed period.
NAICOM subsequently appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of Universal Insurance.
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The receiver has been directed to immediately trace, recover, secure and take possession of the company’s assets, collate its liabilities and facilitate their settlement in line with NIIRA 2025.
He is also required to liaise with NAICOM and submit periodic reports on the progress of the receivership and liquidation process.
What they are saying:
Universal Insurance spokesman, Chinedu Onyilimba, confirmed the licence revocation to Nairametrics on Wednesday but said the company had appealed the decision.
- “Yes, we got that notice on Friday. But we appealed on that. The only thing is that we appealed. The board of NAICOM is meeting now. So, after that meeting, we will have something to say,” Onyilimba told Nairametrics.
The development means the company’s immediate future is subject to the outcome of the appeal and the regulatory process.
In a separate public 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 warned parties dealing with the insurer’s funds, assets, records, policies, claims and liabilities to verify the authority of anyone purporting to act for the company.
Banks and other financial institutions were specifically advised not to honour instructions, withdrawals, transfers or payment mandates issued on behalf of Universal Insurance unless authorised by the receiver.
Get up to speed
Universal Insurance had been actively pursuing recapitalisation before the deadline.
- In February, shareholders approved a plan 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 (CBN), comprising an additional N1.165 billion and an earlier N335 million deposit.
- Nairametrics had reported that the company sought the N15 billion capital raise specifically to meet NAICOM’s revised minimum capital requirement for non-life insurers.
Despite those efforts, Universal Insurance was among six insurers that failed to meet the July 31, 2026 recapitalisation deadline.
Nairametrics reported that the sector raised about N720 billion during the exercise, with 48 insurance companies and two reinsurance firms eventually verified as compliant.
What you should know
NAICOM’s recapitalisation exercise was introduced under NIIRA 2025 to strengthen insurers’ financial capacity, improve their ability to absorb risks and enhance policyholder protection.
The new minimum capital thresholds were raised to:
- N15 billion for non-life insurers;
- N10 billion for life insurers;
- N25 billion for composite insurers; and
- N35 billion for reinsurers.
NAICOM initially confirmed 43 insurance and reinsurance companies as fully compliant after the July 31 deadline, while eight others underwent final verification.
The process subsequently brought the verified number to 48 insurers and two reinsurers, according to Nairametrics.
This development notwithstanding, the shares of Universal Insurance were seen trading on the Nigerian Exchange on Wednesday, August 19, 2026, losing by about N0.08kobo or -9.41% to N0.77kobo, down from N0.80kobo on Tuesday, August 18, 2026.
For Universal Insurance, however, the recapitalisation exercise has moved from fundraising to receivership, leaving the company’s policyholders, creditors, shareholders and other stakeholders to await the outcome of the regulatory and legal processes now underway.
