Abuja: Universal Insurance Plc has announced its compliance with one of the key recapitalisation requirements, the Minimum Capital Requirement (MCR), as stipulated under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. This compliance milestone was highlighted in a statement by the Company’s Secretary and Legal Adviser, Mr. Chinedu Onyilimba.
According to News Agency of Nigeria, the company emphasized that adherence to the MCR guidelines, set forth by the National Insurance Commission (NAICOM), demonstrates its dedication to regulatory compliance and financial robustness. The Managing Director, Dr. Japhet Duru, confirmed that the company has fully deposited N1.5 billion as the statutory deposit with the Central Bank of Nigeria (CBN) in accordance with the MCR regulations.
Dr. Duru explained that an additional N1.165 billion was paid, complementing the initial N335 million deposited, subsequent to receiving shareholders’ approval at an Extraordinary General Meeting (EGM) held on February 5. He expressed optimism about the company’s future, stating, “I am delighted to inform you that we have secured all necessary approvals from our shareholders at the EGM to raise N15 billion for recapitalisation. We are confident that Universal Insurance Plc will be among compliant operators when NAICOM releases the list on July 31, 2026.”
The NIIRA 2025, signed into law by President Bola Tinubu on July 31, 2025, introduces a new framework for Minimum Capital Requirements aimed at fortifying the insurance and reinsurance sectors. This legislation mandates that existing companies must meet the revised MCR thresholds within 12 months of commencement or face regulatory consequences, which could include license cancellation, enforced mergers, or liquidation.
The updated capital requirements are set at N10 billion for life insurance companies, N15 billion for non-life insurance companies, and N35 billion for reinsurance companies. These new thresholds mark a substantial increase from prior requirements and are further supported by a Risk-Based Capital (RBC) framework to ensure capital adequacy aligns with each company’s risk profile.
NAICOM has reiterated that the recapitalisation deadline remains unchanged, and compliance verification will be a continuous process.