Universal Insurance Plc’s N7.128bn recapitalisation plan has been thrown into uncertainty following the National Insurance Commission’s revocation of the insurer’s operating licence and the appointment of a receiver/provisional liquidator over its failure to meet the regulatory minimum capital requirement.

The development casts doubt on the ongoing recapitalisation process.

On August 14, Universal Insurance disclosed to the Nigerian Exchange Limited that it had secured a N7.128bn equity investment from FPNG Co-Nvest Limited through a private placement.

The transaction was expected to give FPNG a 50.1 per cent controlling stake in the insurer.

However, NAICOM’s revocation of the licence, which took effect on August 19, came after Universal Insurance failed to meet the prescribed Minimum Capital Requirement within the stipulated compliance period.

The insurer had said the N7.128bn investment would strengthen its capital base, push it above the applicable regulatory threshold and ensure a strong solvency margin.

The company said its board and management were in discussions with NAICOM and other relevant regulators to secure the necessary approvals for the transaction, adding that all required board and shareholder approvals had been obtained.

The proposed investment was structured as a private placement under a binding investment agreement between Universal Insurance and FPNG Co-Nvest.

However, NAICOM’s subsequent regulatory action has cast uncertainty over both the completion of the transaction and the insurer’s future, with Universal Insurance now placed under a receiver-led process.

In a notice to the Chairman of Universal Insurance’s board, NAICOM said it revoked the insurer’s licence in exercise of its powers under the Nigerian Insurance Industry Reform Act 2025.

The commission also appointed Ogbonna Chukwumerije, a Partner at Pinheiro LP, as receiver/provisional liquidator to oversee the process of winding up the company’s affairs.

Under the terms of his appointment, Chukwumerije is mandated to trace, recover, secure and take possession of Universal Insurance’s assets, as well as identify and settle its liabilities in line with the Nigerian Insurance Industry Reform Act 2025.

He is also expected to liaise with NAICOM, obtain and review relevant records, and submit periodic reports on the progress of the liquidation process.

In a separate public notice dated August 18, Chukwumerije formally informed banks, financial institutions, policyholders, creditors, debtors, customers and other stakeholders that the insurer had been placed under receivership.

Chukwumerije said his appointment followed NAICOM’s revocation of Universal Insurance’s licence after the company failed to meet the applicable minimum capital requirement.

He added that, under NIIRA 2025 and the terms of his appointment, he was empowered to assume management and control of the insurer and take necessary measures to preserve, protect and realise its assets.

Chukwumerije directed individuals and institutions handling Universal Insurance’s funds, assets, records, policies, claims, liabilities or other affairs to verify the authority of anyone purporting to act on behalf of the company.

The regulatory action comes amid an industry-wide recapitalisation exercise that has placed pressure on Nigerian insurers to strengthen their capital bases and meet higher regulatory requirements.