Court halts further action on Universal Insurance licence cancellation by NAICOM

THE Federal High Court Lagos has ordered the National Insurance Commission (NAICOM) and other respondents to refrain from taking further steps that could undermine proceedings over the purported cancellation of Universal Insurance Plc’s operating licence.

Universal Insurance disclosed this in a notice to the Nigerian Exchange Limited (NGX) and the investing public on Tuesday, August 25, 2026.

The company said the court, sitting in the Lagos Judicial Division, Ikoyi, granted it leave to commence proceedings against NAICOM and other respondents over the cancellation of its operating licence and the appointment of a receiver/manager.

The case, filed as Suit No. FHC/LAG/CS/1179/2026, centres on the company’s challenge to the regulatory actions affecting its licence and operations.

According to the company, the court directed the respondents to show cause why an interim order should not be granted to stay further action relating to the cancellation of its operating licence or any action by the third respondent.

The court also ordered the respondents not to take any steps that could create a fait accompli or otherwise render the proceedings nugatory pending the determination of the application.

The matter has been adjourned until September 3, 2026, for the respondents to show cause.

Universal Insurance said it would continue to keep the NGX, shareholders and the investing public informed of material developments in the case in line with applicable regulatory requirements.

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The development comes as Universal Insurance continues to navigate regulatory and capital-related challenges within Nigeria’s insurance sector, where insurers are under pressure to meet the recapitalisation requirements set by NAICOM.

How it started

Universal Insurance Plc’s N7.128bn recapitalisation was thrown into uncertainty after the National Insurance Commission revoked the insurer’s operating licence and appointed a receiver/provisional liquidator over its failure to meet the regulatory minimum capital requirement.

The development created a sharp contradiction in the insurer’s recapitalisation process. On August 14, Universal Insurance disclosed to the Nigerian Exchange Limited that it had secured a N7.128 billion equity investment from FPNG Co-Nvest Limited through a private placement, a transaction that would give FPNG a 50.1 percent controlling stake in the company.

However, NAICOM revoked its license on August 19, saying the insurer failed to meet the prescribed Minimum Capital Requirement within the stipulated compliance period.