UNIVERSAL INSURANCE SUES NAICOM OVER LICENCE REVOCATION

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

The insurer disclosed the legal action in a notice filed with the Nigerian Exchange and signed by its Company Secretary, Chinedu Onyilimba.

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

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 revocation and receivership.

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

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

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

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

The development comes shortly after Universal Insurance announced a proposed ₦7.13bn equity investment from FPNG Co-Nvest Limited through a private placement. The transaction would give FPNG Co-Nvest a 50.1 per cent controlling stake in the insurer if completed.

The proposed investment was expected to strengthen Universal Insurance’s capital position and support its recapitalisation plans.

The ongoing court case could therefore have implications for the proposed investment and the future of the insurer.

Universal Insurance said it would continue to provide updates to the NGX, shareholders, and the investing public as material developments occur.