The National Insurance Commission (NAICOM) has cancelled the operating licence of Universal Insurance Plc and appointed a receiver/provisional liquidator to take control of the insurer’s assets and begin the process of winding up its affairs.
The action, which took effect on August 14, 2026, followed the insurer’s failure to meet the minimum capital requirement (MCR) prescribed for its category of licence within the regulatory compliance period.
The development marks a significant enforcement action by the insurance regulator as the industry moves into a new phase under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which places greater emphasis on capital adequacy and financial capacity among operators.
In a notice dated August 13 and addressed to the chairman of Universal Insurance’s board, NAICOM said it cancelled the company’s certificate of registration pursuant to powers conferred on the commission by NIIRA 2025.
The commission subsequently appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of the company.
Under the terms of his appointment, Chukwumerije is required to immediately trace, recover, secure and take possession of Universal Insurance’s assets, while identifying, verifying and settling its liabilities in accordance with NIIRA 2025 and other applicable regulations.
He is also mandated to liaise with NAICOM on information relating to the company and submit periodic reports on the progress of the receivership and liquidation process.
The appointment is subject to the receiver executing a Deed of Appointment and complying with the terms of his engagement as well as applicable rules governing receivership and liquidation.
In a public notice dated August 18, Chukwumerije formally notified stakeholders of the receivership and warned them against acting on instructions purportedly issued on behalf of the insurer without his authorisation.
Banks and other financial institutions were directed not to honour, process or recognise any payment, withdrawal, transfer, mandate or other instruction issued in the name of Universal Insurance unless such instruction was issued by the receiver or by a person expressly authorised by him in writing.
The receiver also directed anyone holding the company’s assets, funds, books, records, policies, claims or other documents to cooperate with the liquidation process and comply with lawful requests for their surrender or verification.
Only instructions bearing the receiver’s official seal and stamp, or those issued by persons duly authorised by him, will be recognised in relation to the company’s affairs and liquidation.
The directive is designed to prevent unauthorised transactions or disposal of the insurer’s assets during the winding-up process.
Chukwumerije said the receivership would focus on safeguarding the company’s assets and ensuring that valid claims and other obligations were properly identified, assessed and dealt with in accordance with the law.
The immediate challenge will be determining the scale of Universal Insurance’s outstanding obligations and the assets available to meet them.
The receiver is now expected to undertake an extensive verification exercise covering the company’s assets, liabilities, policies, outstanding claims, records and other obligations.
For policyholders and creditors, the process will be critical in determining the status of outstanding claims and the eventual recovery available to legitimate claimants.
The receiver’s mandate includes collating, verifying and settling the company’s liabilities in line with NIIRA 2025, applicable laws and directives issued by NAICOM.
He is also required to report periodically to the commission on the administration of the liquidation.
Universal Insurance’s licence cancellation comes as NAICOM intensifies enforcement of the minimum capital requirements under Nigeria’s new insurance regulatory framework.
The action underscores the regulator’s willingness to move beyond recapitalisation approvals and apply sanctions where operators fail to meet prescribed capital thresholds.
The capital requirements were introduced to strengthen the financial capacity of insurers, improve their ability to absorb losses and ultimately protect policyholders.
NAICOM’s appointment letter was signed by Olusegun Omosehin, commissioner for Insurance/CEO of the commission, while the receiver’s public notice took effect from August 18 and is expected to remain in force throughout the liquidation process, subject to further directives from NAICOM or the receiver.
Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.
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