- Appoints liquidator to chair winding up
Foremost insurance regulator, NAICOM, in a public notice on Wednesday announced the withdrawal of the operational license of UNIC Insurance Plc whilst also informing that it has appointed a liquidator to chair the winding up process of the insurance firm.
The withdrawal, according to NAICOM took effect from 25th March 2021 even though the regulator did not detail the reason for withholding the operational license of the insurer.
The regulator stated that it is revoking the operational license of the insurer in the exercise of the power conferred on her.
“This is to notify the general public/policyholders that, in the exercise of the power conferred on her by enabling laws, the National Insurance Commission (NAICOM) has canceled the operational license issued hitherto to UNIC Insurance Plc – RIC 043 to operate as an insurance company with effect from 25th March 2021,” It said.
It however added that the commission has appointed Hadiza Baba Gimba as the receiver/liquidator to wind-up the affair of the company.
“The general public/policyholders are by this notice required to direct all inquiries and correspondence regarding UNIC Insurance Plc to the receiver/liquidator who will be dealing with its liabilities in accordance with the provisions of the insurance act 2003.”
While stakeholders are still kept in the dark as to the reason for revoking the insurer’s license, many have assumed that the development may not be unconnected with the consolidation of the insurance firm.
NAICOM had recently been constrained by the court from compelling insurance firms to meet the first tranche of the recapitalization deadline which was long due on December 31st owing to COVID-19. The exercise required all insurance firms to shore up at least 50 percent of their capital base in accordance to the scope of operation.
The recapitalization exercise requires life insurance, general insurance and composite firms to have up to N8 billion, N10 billion and N18 billion against the respective N2 billion, N3 billion and N5.0 billion threshold. Similarly, reinsurance firms are required to have a minimum capital of N20.0 billion from a previous N10 billion.