Recapitalisation: Universal Insurance shores up MCR statutory deposit, pays N1.165bn to CBN
Managing Director/CEO, Universal Insurance Plc, Dr. Japhet Duru
Nike Popoola
In a significant demonstration of regulatory compliance and financial strength, Universal Insurance Plc today announces that it has successfully met one of the recapitalisation requirements mandated under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the accompanying Minimum Capital Requirement (MCR) Guidelines issued by the National Insurance Commission (NAICOM).
According to a statement from the Company, the Managing Director/CEO, Dr. Japhet Duru stated that the company has fully deposited the sum of N1,500,000,000, the statutory deposit with Central Bank of Nigeria in line with the MCR Guidelines. The CEO added that the company paid N1,165,000,000 in addition to the already paid N335,000,000 after its Extraordinary General Meeting (EGM) held on February 4, 2026 to meet the statutory deposit requirement.
“I am delighted to inform you that we have gotten all mandatory consent from our shareholders at the EGM to raise the sum of N15,000,000,000 for the purpose of recapitalization. We are confident that Universal Insurance Plc will be on the roll call when NAICOM releases the list come July 31, 2026”.
NIIRA 2025, which was assented to by the President of the Federal Republic of Nigeria, President Bola Tinubu, GCFR on 31 July 2025, introduced a new framework for Minimum Capital Requirements (MCR) for insurance and reinsurance companies as part of broad reforms to strengthen the nation’s insurance sector. Under the Act, existing operators were given 12 months from the commencement date to meet new MCR thresholds or risk regulatory actions including cancellation of licenses, merger directives, or liquidation.
Key Minimum Capital Requirements under NIIRA 2025 include:
Life insurance firms — ₦10,000,000,000;
Non-life insurance operators — ₦15,000,000,000;
Reinsurance companies — ₦35,000,000,000.
These thresholds represent a substantial increase from the previous statutory requirements and are complemented by a Risk-Based Capital (RBC) framework aimed at aligning capital adequacy with each company’s risk profile.
The recapitalisation deadline for all operators, set for 30 July 2026, remains in force, with NAICOM reaffirming that the timeline will not be extended and that compliance verification will be ongoing.
Dr. Duru has reaffirmed the commitment of the Company to prompt payment of genuine claims and impressive customer service experience.
