Universal Insurance secures N7.1bn investment for recapitalisation

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Universal Insurance Plc has secured a N7.128bn equity investment from FPNG Co-Nvest Limited as it moves to strengthen its capital base and meet regulatory requirements under the ongoing insurance industry recapitalisation exercise.

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The insurer disclosed this in a market update filed with the Nigerian Exchange Limited on Friday, following a request by NGX Regulation Limited for clarification on the company’s recapitalisation status.

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Under a binding investment agreement, FPNG will inject the N7.128bn through a private placement in exchange for additional shares in Universal Insurance.

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The transaction will give FPNG a 50.1 per cent majority stake in the insurer once completed, effectively making it the controlling shareholder of the company.

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Universal Insurance said that its board and management are currently engaging the National Insurance Commission and other relevant regulators to secure the necessary regulatory clearance for the transaction.

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According to the company, completion of the investment will enable it to exceed the applicable regulatory capital requirement while maintaining a strong solvency margin.

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The insurer said that it has already obtained the required board and shareholder approvals for the transaction and remains committed to meeting all regulatory conditions attached to the recapitalisation process.

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Universal Insurance added that it would continue working with NAICOM on the next steps and provide the NGX, shareholders and the investing public with updates on any material developments.

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The move comes as Nigerian insurers race to strengthen their capital positions in line with the industry’s ongoing recapitalisation requirements.

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