Universal Insurance Plc has approached the Federal High Court in Lagos to challenge the purported cancellation of its operating licence by the National Insurance Commission (NAICOM) and the appointment of a Receiver/Manager.
The company disclosed this in a statement signed by its Company Secretary, Chinedu Onyilimba, on Tuesday, August 25, 2026, notifying shareholders and the investing public of the court proceedings.
Universal Insurance said the Federal High Court, Lagos Judicial Division, Ikoyi, in Suit No. FHC/LAG/CS/1179/2026, granted it leave to commence proceedings against NAICOM and other respondents over the licence cancellation and appointment of a Receiver/Manager.
The court also directed the respondents to explain why an interim order should not be granted to stop further action relating to the cancellation of the company’s operating licence or any action by the third respondent.
Universal Insurance said the court further directed the respondents not to take any steps that could create a fait accompli or render the proceedings nugatory pending the determination of the application.
“The Honourable Court has further directed the Respondents to show cause why an interim order staying any further action in respect of the cancellation of the Company’s operating licence or any action by the 3rd Respondent should not be granted,” the company said.
The matter has been adjourned until September 3, 2026, when the respondents are expected to show cause.
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The legal action comes against the backdrop of NAICOM’s recently concluded insurance industry recapitalisation exercise, which was designed to strengthen insurers’ capital bases and increase their capacity to underwrite larger risks.
Pinnacle Daily reported that NAICOM on August 13 revealed that an additional seven companies met the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, bringing the number of compliant firms to 50, comprising 48 insurance companies and two reinsurance companies.
However, about six firms, including Universal Insurance, Staco Insurance, Nigeria Re, NICON, Royal Exchange Prudential Life and Goldlink, did not meet the new capital requirements, according to the regulator.
The recapitalisation exercise has also triggered legal disputes involving some companies.
NICON Insurance and Nigeria Reinsurance Corporation have challenged aspects of the process in court, while the Federal Ministry of Finance directed NAICOM to suspend enforcement of disputed charges and directives pending the resolution of the firms’ petitions.
Companies that failed to meet the new capital thresholds now face regulatory action. Goldlink Insurance Plc’s licence has reportedly been revoked, with the company undergoing the winding-up process.
Against this background, Universal Insurance’s court action could further test the regulatory process surrounding the recapitalisation exercise and the consequences for insurers that failed to meet the new capital requirements.
Universal Insurance said it would continue to provide updates to the Nigerian Exchange (NGX), its shareholders and the investing public as material developments occur, in line with the NGX Issuers’ Rules and other applicable regulatory requirements.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X