Universal Insurance sues NAICOM over licence revocation

Universal Insurance Plc has filed a lawsuit against the National Insurance Commission (NAICOM) to overturn the revocation of its operating licence and the appointment of a provisional liquidator. The legal action, filed in the Federal High Court Lagos, seeks to halt proceedings following NAICOM’s decision to cancel the insurer's licence on August 14, 2026. The regulator cited the company’s failure to meet the July 31 deadline for new minimum capital requirements mandated by the Nigerian Insurance Industry Reform Act 2025.

The company’s collapse follows a N15 billion recapitalisation shortfall. Despite the regulatory breach, unaudited financials for June 30, 2026, showed the insurer had generated N8.83 billion in revenue and a profit after tax of N4.90 billion. The company had previously secured shareholder approval to raise fresh equity and transferred a N1.5 billion statutory deposit to the Central Bank of Nigeria.

The liquidation has drawn scrutiny toward five South-East Nigerian state governments—Abia, Anambra, Ebonyi, Enugu, and Imo—which hold legacy interests in the firm. Critics have questioned why these states did not intervene to address the capital shortfall, given the company's historic role and recent profitability. The court has adjourned the matter until September 3, 2026, directing parties to avoid actions that might undermine the legal proceedings.