Universal Insurance secures N7.1bn investment for recapitalisation

Universal Insurance Plc has secured a N7.128bn equity investment from FPNG Co-Nvest Limited as it moves to strengthen its capital base and meet regulatory requirements under the ongoing insurance industry recapitalisation exercise.

The insurer disclosed this in a market update filed with the Nigerian Exchange Limited on Friday, following a request by NGX Regulation Limited for clarification on the company’s recapitalisation status.

Under a binding investment agreement, FPNG will inject the N7.128bn through a private placement in exchange for additional shares in Universal Insurance.

The transaction will give FPNG a 50.1 per cent majority stake in the insurer once completed, effectively making it the controlling shareholder of the company.

Universal Insurance said that its board and management are currently engaging the National Insurance Commission and other relevant regulators to secure the necessary regulatory clearance for the transaction.

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According to the company, completion of the investment will enable it to exceed the applicable regulatory capital requirement while maintaining a strong solvency margin.

The insurer said that it has already obtained the required board and shareholder approvals for the transaction and remains committed to meeting all regulatory conditions attached to the recapitalisation process.

Universal Insurance added that it would continue working with NAICOM on the next steps and provide the NGX, shareholders and the investing public with updates on any material developments.

The move comes as Nigerian insurers race to strengthen their capital positions in line with the industry’s ongoing recapitalisation requirements.

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