Universal Insurance sells N7bn stake to FPNG Co-Nvest to meet NAICOM’s recapitalisation requirement

Universal Insurance Plc says it has entered into a binding agreement with FPNG Co-Nvest Limited for a N7.12 billion equity investment as it works to meet the National Insurance Commission’s (NAICOM) recapitalisation requirement.

The insurer announced the impending deal in a market update filed with the Nigerian Exchange Limited (NGX) on Friday.

The announcement followed a request from NGX Regulation Limited (NGX RegCo) after the publication of a report on August 3 listing the 43 insurance firms that had scaled NAICOM’s recapitalisation hurdle.

Universal said FPNG would invest N7.12 billion through a private placement in exchange for additional shares in the company.

The insurer also said FPNG would become the majority shareholder, with a 50.1 percent equity stake, after the transaction is concluded.

“The Board and Management of the Company is progressing with engagements with the National Insurance Commission (NAICOM) and other relevant regulators regarding the Transaction,” the non-life insurer said.

Universal said completion of the transaction would enable it to exceed its regulatory capital requirement while maintaining a robust solvency margin.

The company said all relevant board and shareholder approvals for the transaction had been obtained.

However, the transaction is still subject to engagements with NAICOM and other relevant regulators before it can be concluded.

Universal said it would continue to work with NAICOM on the next steps in its recapitalisation process.

The insurer also said it would keep NGX, its shareholders and the investing public informed of material developments regarding the transaction.

On Thursday, NAICOM said the industry’s recapitalisation exercise has been successfully completed after confirming seven more insurers have met the new minimum capital requirements. (TheCable)