The Federal High Court in Lagos has extended an existing restraining order against the National Insurance Commission and the receiver appointed over Universal Insurance Plc, as the insurer’s challenge to regulatory action against it continues.
The matter came up on September 3 but could not proceed after processes were filed late by the respondents. The court consequently adjourned the substantive hearing until September 16 and extended the restraining order pending that hearing.
Universal Insurance Plc has disclosed that the court has prolonged an earlier order preventing the respondents from taking further action while the substantive case remains pending.
According to the insurer, it will continue to explore appropriate legal and regulatory measures aimed at safeguarding the interests of its shareholders, policyholders, employees and other stakeholders. The company also assured investors that it would provide further updates whenever there are material developments in the matter.
The dispute followed the National Insurance Commission’s decision to revoke Universal Insurance’s operating licence with effect from August 14, after the company was said to have fallen short of the minimum capital requirement applicable to its category of insurance business.
Universal Insurance, however, maintains that it had taken steps towards meeting the recapitalisation threshold through an agreement with FPNG Co-Nvest Limited for a ₦7.12 billion equity injection by way of private placement.
The insurer subsequently approached the court to challenge further regulatory action by NAICOM, leading to the restraining order that has now been extended pending the hearing of the suit.
The matter has also attracted attention within the capital market, with the Association of Securities Dealing Houses of Nigeria reportedly calling for a reconsideration of the licence revocation. The association raised concerns around investor protection and the need for effective coordination among relevant regulatory authorities.
