NGX Suspends Universal Insurance Shares After NAICOM Licence Revocation

The Nigerian Exchange Limited (NGX) has suspended trading in the shares of Universal Insurance Plc following the revocation of the insurer’s operational licence by the National Insurance Commission (NAICOM).

The suspension took effect in accordance with NGX rules governing the suspension of trading in listed securities.

The Exchange said the decision followed NAICOM’s revocation of Universal Insurance’s licence over the company’s failure to meet the minimum capital requirement applicable to its category of insurance licence.

NGX also noted that NAICOM had appointed a liquidator to take over the assets of the company following the revocation of its licence.

In a market notice to Trading License Holders and the investing public, NGX said the suspension was effected pursuant to Rule 7.0 of the Rules on Suspension of Trading in Listed Securities under the Rulebook of The Exchange (Issuers’ Rules).

The rule empowers the Exchange to suspend trading in any listed security where it considers such action necessary in the interest of the investing public and in accordance with applicable rules of the Securities and Exchange Commission (SEC).

The suspension effectively prevents investors from buying or selling Universal Insurance shares on the NGX trading platform until further regulatory direction.

The development represents another major setback for the insurer following the regulatory action taken by NAICOM over its capital position.

NAICOM’s decision was based on the company’s failure to satisfy the minimum capital requirement prescribed for its licence category, a requirement designed to ensure that insurance companies maintain sufficient financial capacity to underwrite risks and meet their obligations to policyholders.

The appointment of a liquidator further signals the commencement of the process for taking control of the company’s assets and managing its affairs following the withdrawal of its operating licence.

For shareholders, the NGX suspension means that trading in Universal Insurance’s listed shares has been placed on hold, limiting the ability of investors to transact in the stock on the Exchange.

The action also underscores the increasing regulatory focus on capital adequacy within Nigeria’s insurance industry, as operators are required to maintain financial resources capable of supporting their underwriting activities and protecting policyholders.

The suspension follows the wider recapitalisation drive in the insurance sector, under which NAICOM has sought to strengthen the financial capacity and resilience of insurance companies operating in the country.

Universal Insurance Plc is therefore expected to remain subject to the regulatory and liquidation processes arising from the licence revocation, while the NGX suspension remains in effect.

The Exchange said the suspension was undertaken in accordance with its rules and in the interest of the investing public, following the regulatory action by NAICOM.

THE WHISTLER reported recently that the National Insurance Commission (NAICOM) revoked the certificate of registration of the insurance firm after the insurer failed to meet the minimum capital requirement applicable to its licence category.

The revocation, which took effect on August 14, 2026, was communicated to the board of Universal Insurance in a notice dated August 13, according to the commission.

NAICOM said the action was taken in exercise of its statutory powers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, following the company’s failure to satisfy the prescribed minimum capital threshold.

As part of measures to manage the affairs of the insurer following the cancellation, the commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as receiver/provisional liquidator for Universal Insurance.

Chukwumerije subsequently notified the company’s policyholders, creditors, debtors, banks, financial institutions and other stakeholders that he had assumed responsibility for the affairs of the insurer.

In a notice issued on August 18, the receiver/provisional liquidator said his mandate included overseeing the company’s affairs and taking appropriate steps to safeguard its assets during the process.

He directed banks and other financial institutions dealing with Universal Insurance to recognise only instructions issued or authorised by him in relation to the company’s accounts and financial affairs.

Chukwumerije also called on individuals, businesses and institutions holding money, assets, records, insurance policies, claims or other property belonging to Universal Insurance to cooperate with the process and provide relevant information whenever required.