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Universal Insurance Sues NAICOM Over Licence Revocation

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Universal Insurance Sues NAICOM Over Licence Revocation
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By Benson Daniel

Universal Insurance Plc has taken the National Insurance Commission, NAICOM, to court, challenging the cancellation of its operating licence and the appointment of a receiver or provisional liquidator.

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

Universal Insurance said the Federal High Court in Lagos granted it leave to commence proceedings against NAICOM and other respondents over what it 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 granted to stop further action relating to the licence cancellation and receivership. The parties were further directed not to take steps that could undermine the ongoing proceedings.

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. NAICOM subsequently appointed Ogbonna Chukwumerije of Pinheiro LP as receiver or provisional liquidator.

The court action could also affect Universal Insurance’s proposed N7.128 billion recapitalisation deal with FPNG Co-Nvest Limited, which was expected to give the investor a 50.1 per cent controlling stake in the insurer.

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