Universal Insurance sues NAICOM over licence revocation

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Universal Insurance Plc has taken the National Insurance Commission to court, seeking to overturn the regulator’s cancellation of its operating licence and the appointment of a receiver/provisional liquidator.

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The insurer disclosed the legal action in a notice filed with the Nigerian Exchange on Tuesday and signed by its company secretary, Chinedu Onyilimba.

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The Federal High Court Lagos granted Universal Insurance leave to commence proceedings against NAICOM and other respondents over what the company described as the “purported cancellation” of its licence and the subsequent receivership.

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The court also directed the respondents to show cause why an interim order should not be issued to halt further action relating to the licence cancellation and receivership.

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Universal Insurance said the court further directed the parties not to take any steps that could undermine the effectiveness of the proceedings pending the determination of its application.

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The case has been adjourned until September 3, 2026, when the respondents are expected to show cause.

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The dispute followed NAICOM’s decision to revoke Universal Insurance’s licence after the company failed to meet the 31st July deadline for compliance with the new minimum capital requirements for non-life insurers.

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The cancellation became effective on 14th August, 2026, following a notice issued by the commission.

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NAICOM said the action was taken under the Nigerian Insurance Industry Reform Act 2025, which empowers the regulator to cancel the licence of an insurer that fails to address identified regulatory breaches within the prescribed period.

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Following the cancellation, the commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator.

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The receiver was tasked with taking control of the insurer’s assets, establishing its liabilities, facilitating settlements where appropriate and submitting periodic reports to NAICOM.

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Universal Insurance’s court challenge comes shortly after the company announced a proposed N7.13 bn equity investment by FPNG Co-Nvest Limited through a private placement.

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The transaction would give FPNG Co-Nvest a 50.1 percent controlling stake in the insurer if completed and was expected to strengthen Universal Insurance’s capital position.

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The outcome of the court proceedings could therefore have implications for the proposed investment and the company’s planned recapitalisation.

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Universal Insurance said it would continue to update the NGX, shareholders and the investing public on material developments concerning the case.

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