ASHON SEEKS REVIEW OF UNIVERSAL INSURANCE LICENCE REVOCATION

The Association of Securities Dealing Houses of Nigeria has called for an urgent review of the revocation of Universal Insurance Plc’s operating licence, warning that poorly coordinated regulatory action could weaken investor confidence in Nigeria’s capital market.

ASHON said the issue goes beyond the affected insurer because Universal Insurance is a publicly listed company whose regulatory status directly affects shareholders, stockbrokers, the Nigerian Exchange and other investors.

The association’s concerns followed the National Insurance Commission’s decision to revoke the insurer’s licence and appoint a receiver/provisional liquidator.

ASHON noted that Universal Insurance had disclosed a proposed N7.128bn equity investment from FPNG Co-Nvest Limited through a private placement. The transaction was expected to give the investor a 50.1 per cent controlling stake and strengthen the insurer’s capital position.

The group questioned how the proposed recapitalisation could be pursued while the company was simultaneously placed on a liquidation path.

It urged regulators to assess credible recapitalisation plans before taking irreversible measures where circumstances allow.

ASHON also called for stronger coordination among NAICOM, the Securities and Exchange Commission and the Nigerian Exchange whenever regulatory decisions could significantly affect listed companies.

The association said a more gradual resolution process could help protect investors, preserve value and strengthen confidence in Nigeria’s financial markets.