The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc and appointed a receiver and provisional liquidator to assume control of the company, citing 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, a decision confirmed by the regulator.
The action was taken pursuant to powers conferred on NAICOM by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which authorises the commission to cancel the licence of an insurer that fails to remedy regulatory breaches within the prescribed period. Following the revocation, NAICOM appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver and Provisional Liquidator of Universal Insurance. 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.
Universal Insurance spokesman Chinedu Onyilimba confirmed the licence revocation 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 stated. The development leaves the company’s immediate future subject to the outcome of the appeal and the ongoing 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.
Universal Insurance had been actively pursuing recapitalisation before the deadline but was among six insurers that failed to meet the July 31, 2026 recapitalisation target. The sector raised approximately N720 billion during the exercise, with 48 insurance companies and two reinsurance firms eventually verified as compliant. 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, a process that subsequently brought the verified number to 48 insurers and two reinsurers.
Despite the regulatory action, shares of Universal Insurance were seen trading on the Nigerian Exchange on Wednesday, August 19, 2026, losing approximately N0.08 kobo or 9.41 percent to close at N0.77 kobo, down from N0.80 kobo on the previous trading day. For Universal Insurance, the recapitalisation exercise has shifted from fundraising to receivership, leaving policyholders, creditors, shareholders and other stakeholders awaiting the outcome of the regulatory and legal processes now underway.
