Universal Insurance Plc has commenced legal proceedings against the National Insurance Commission (NAICOM) over the cancellation of its operating licence and the subsequent appointment of a receiver/provisional liquidator.
The insurer disclosed the development in a notice to the Nigerian Exchange, signed by its Company Secretary, Chinedu Onyilimba.
According to the company, the Federal High Court in Lagos granted it permission to institute proceedings against NAICOM and other respondents over what it described as the “purported cancellation” of its licence and the receivership that followed.
The court also directed the respondents to explain why an interim order should not be granted to suspend further action connected with the licence cancellation and receivership.
Universal Insurance said the court further ordered the parties to refrain from taking steps capable of undermining the proceedings while its application is being considered.
The matter has been adjourned until September 3, 2026, when the respondents are expected to appear and show cause.
The dispute arose after NAICOM cancelled Universal Insurance’s operating licence following the company’s failure to meet the July 31 deadline for compliance with the new minimum capital requirements for non-life insurers.
The cancellation took effect on August 14, 2026, after the commission issued the relevant notice.
NAICOM said the action was taken pursuant to the Nigerian Insurance Industry Reform Act 2025, which gives the regulator powers to cancel the licence of an insurer that fails to remedy identified regulatory breaches within the prescribed timeframe.
Following the cancellation, the commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator.
The receiver was mandated to take control of the insurer’s assets, determine its liabilities, facilitate settlements where appropriate and submit periodic reports to NAICOM.
Universal Insurance’s legal challenge comes against the backdrop of its proposed N7.13 billion equity investment from FPNG Co-Nvest Limited through a private placement.
If completed, the transaction would give FPNG Co-Nvest a 50.1 per cent controlling interest in the insurer and provide additional capital to support its recapitalisation efforts.
The outcome of the court proceedings could therefore affect both the company’s regulatory status and the proposed investment.
Universal Insurance said it would continue to provide updates to the NGX, shareholders and the investing public on any material developments arising from the case.
