The National Insurance Commission, NAICOM, has cancelled the certificate of registration of Universal Insurance Plc after the company failed to meet the minimum capital requirement prescribed for its category of insurance business.
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The cancellation took effect on August 14, 2026, following a notice issued by the insurance regulator to the company’s board on August 13.
NAICOM said it exercised its regulatory powers under the Nigerian Insurance Industry Reform Act, NIIRA, 2025, which substantially increased the minimum capital requirements for insurance and reinsurance companies operating in Nigeria.
Universal Insurance operates as a non-life insurer, a category for which NIIRA 2025 requires an operator to maintain the higher of ₦15 billion in minimum capital or the applicable risk-based capital determined by the Commission.
Existing insurance companies were given a transition period to comply with the new requirements, with the recapitalisation deadline expiring on July 30, 2026.
Following the cancellation of Universal Insurance’s registration, NAICOM appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver and provisional liquidator to oversee the affairs of the company.
In a notice issued on August 18, Chukwumerije informed policyholders, creditors, debtors, banks and other stakeholders that he had formally assumed responsibility for the company’s affairs.
The receiver said his mandate includes taking necessary steps to secure and preserve Universal Insurance’s assets while the regulatory and liquidation process progresses.
Banks and other financial institutions dealing with Universal Insurance were consequently directed to recognise only instructions issued or expressly authorised by the receiver in relation to the insurer’s accounts and financial affairs.
Persons or institutions holding money, documents, insurance policies, assets, claims records or other property belonging to Universal Insurance were also asked to cooperate with the receiver and provide relevant information when required.
The cancellation came despite a last-minute effort by Universal Insurance to strengthen its capital position through a proposed ₦7.128 billion investment by FPNG Co-Nvest Limited.
In a market disclosure filed with the Nigerian Exchange Limited on August 14, the same date the cancellation became effective, Universal Insurance disclosed that it had entered into an arrangement under which FPNG Co-Nvest would inject fresh equity through a private placement.
Under the proposed transaction, FPNG was expected to become the majority shareholder in Universal Insurance with a 50.1 per cent equity stake.
The insurer had said the proposed investment would take it above the regulatory capital requirement and strengthen its solvency position.
Universal Insurance said at the time that its board and management were engaging NAICOM and other relevant regulators over the transaction.
It also disclosed that necessary board and shareholder approvals had been obtained, although the transaction remained subject to regulatory engagement and other processes.
The proposed capital injection, however, did not prevent NAICOM from proceeding with the cancellation of the company’s registration.
NIIRA 2025 represents one of the most significant reforms of Nigeria’s insurance industry in recent years.
Section 15 of the Act provides that a person may not carry on insurance business in Nigeria without maintaining prescribed minimum capital.
For non-life insurance companies, the statutory minimum is ₦15 billion or the amount determined under NAICOM’s risk-based capital assessment, whichever is higher.
Life insurance operators are required to maintain at least ₦10 billion or the applicable risk-based capital, while reinsurance companies must maintain at least ₦35 billion or the higher risk-based requirement.
The risk-based capital framework allows NAICOM to take into account the particular risks carried by an insurer, including insurance, market, credit and operational risks, rather than relying solely on a uniform capital figure.
The recapitalisation exercise followed President Bola Tinubu’s assent to NIIRA on July 31, 2025, after which existing insurance operators were required to strengthen their capital positions within the prescribed transition period.
Universal Insurance had been making efforts to raise fresh funds ahead of the deadline.
Earlier in January 2026, the company sought shareholders’ approval to raise as much as ₦15 billion through various financing options, including a public offer, private placement, rights issue or a combination of available instruments.
Its subsequent ₦7.128 billion agreement with FPNG Co-Nvest represented another attempt to achieve the required capital position.
The appointment of a receiver following cancellation is particularly important to policyholders and creditors because the process is intended to preserve the insurer’s assets and address outstanding obligations in accordance with the applicable legal framework.
NIIRA also contains safeguards relating to policyholders’ funds in the event of liquidation, winding-up or cessation of an insurer’s business.
Universal Insurance, which has operated in Nigeria for more than six decades, provides several categories of non-life insurance, including motor, fire, marine, aviation, oil and gas, engineering and general accident insurance.
The regulatory action against the company signals the commencement of stricter enforcement of the recapitalisation provisions of NIIRA 2025 against operators that failed to satisfy the new capital requirements within the prescribed period.
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