Universal Insurance’s recapitalisation plans hit by licence revocation
Universal Insurance Plc’s efforts to recapitalise with a N7.128bn investment have been disrupted after its operating licence was revoked by the National Insurance Commission. The company had announced a major equity deal with FPNG Co-Nvest Limited, aiming to secure its financial footing and exceed regulatory requirements. However, the regulator’s intervention has placed the insurer under receivership, raising uncertainty about its future. Ogbonna Chukwumerije has been appointed as receiver/provisional liquidator to oversee the winding up process.
TLDR
- On 14 August, Universal Insurance disclosed it had secured a N7.128bn equity investment from FPNG Co-Nvest Limited via private placement.
- NAICOM’s licence revocation took effect on 19 August after the insurer failed to meet the minimum capital requirement.
- In a public notice dated 18 August, Ogbonna Chukwumerije was appointed receiver/provisional liquidator to manage the company’s affairs.
- The recapitalisation deal would have given FPNG a 50.1% controlling stake, but its future is now uncertain due to the regulatory action.
- Universal Insurance’s stock fell by 9.4% to 0.77k following the news, after previously reaching a 52-week high of N1.74.
