Universal Insurance Plc has signed a N7.128 billion private placement agreement with FPNG Co-Nvest Limited as part of efforts to meet Nigeria’s insurance industry recapitalisation requirements.
Under the agreement, FPNG will inject N7.128 billion in fresh equity capital into the insurer in exchange for additional shares. The investment will give FPNG a 50.1 percent majority stake in Universal Insurance.
Universal Insurance is among the companies that did not initially meet the recapitalisation requirements set by the National Insurance Commission (NAICOM).
The company said the fresh capital would enable it to exceed the required regulatory capital threshold while maintaining a strong solvency position.
According to the company secretary, Chinedu Onyilimba, Universal Insurance has already obtained the necessary board and shareholder approvals for the transaction.
However, the deal still requires approval from NAICOM and other relevant regulators before it can be completed.
The insurer said its management and board are currently engaging with the regulators and will continue to update the Nigerian Exchange Limited (NGX), shareholders and the investing public on major developments.
FPNG Co-Nvest Limited, an institutional investment vehicle and subsidiary of FigPoint (Fig Partners Africa), invests in major Nigerian listed companies, particularly within the capital market and financial sector.
