The National Insurance Commission (NAICOM) has revoked the operating licence of Universal Insurance Plc, citing the company's failure to comply with the mandatory recapitalisation requirement. The decision, announced in a public notice dated August 19, 2026, takes immediate effect and bars the insurer from conducting any further insurance business in Nigeria.
Recapitalisation Deadline Missed
According to the public notice signed by NAICOM's Director of Supervision, Mr. Pius Agboola, Universal Insurance Plc was unable to meet the minimum paid-up capital requirement stipulated under the Market Conduct and Recapitalisation Guidelines for the insurance industry. The commission had set a deadline of June 30, 2026, for all insurance companies to comply with the new capital thresholds.
NAICOM stated that the company had been notified of the deficiency and given multiple opportunities to regularise its position. However, Universal Insurance Plc failed to provide evidence of meeting the recapitalisation requirement within the stipulated timeframe. As a result, the commission invoked its powers under Section 24 of the National Insurance Commission Act 1997 to revoke the licence.
Impact on Policyholders and Stakeholders
The revocation means that Universal Insurance Plc is no longer authorised to underwrite new insurance policies or renew existing ones. The company must also cease all marketing and promotional activities related to insurance products. NAICOM has directed the insurer to submit a detailed plan for the orderly run-off of its existing portfolio, ensuring that policyholders' claims are settled in accordance with the law.
“Policyholders of Universal Insurance Plc are advised to contact the company directly for information on the status of their policies and claims,” the notice read. “The commission will continue to monitor the run-off process to protect the interests of policyholders.”
The regulator further warned that any director, officer, or agent of the company who continues to transact insurance business after the revocation would be liable to prosecution under the NAICOM Act.
Industry Context and Regulatory Push
The revocation is part of a broader regulatory push by NAICOM to enforce compliance with the recapitalisation exercise that began in 2024. The commission had raised the minimum capital requirements for various classes of insurance business to strengthen the financial stability of the sector and enhance its capacity to absorb large claims.
Universal Insurance Plc, which was listed on the Nigerian Exchange Limited (NGX), had been struggling to raise the required capital through rights issues and other measures. The company's inability to secure additional investment or meet the deadline ultimately led to the licence revocation.
Industry analysts noted that the move by NAICOM signals a zero-tolerance approach to non-compliance, which could lead to further consolidations or exits in the insurance sector. As of the date of the notice, Universal Insurance Plc had not issued an official statement regarding the revocation or its plans for the run-off of existing policies.
