Embattled Universal Insurance Plc has entered into a binding N7.128 billion private placement agreement with FPNG Co-Nvest Limited, a transaction that could provide the insurer with the capital needed to clear the regulatory hurdle under Nigeria’s recently concluded insurance industry recapitalisation exercise.
Under the agreement, FPNG will inject N7.128 billion in fresh equity capital into Universal Insurance through a private placement in exchange for additional shares, resulting in FPNG becoming the company’s majority shareholder with a 50.1 percent equity stake.
The transaction comes as Universal Insurance remains among the insurers that did not scale the recapitalisation hurdle as published by the National Insurance Commission’s (NAICOM).
In a market update to the Nigerian Exchange Limited (NGX), signed by Chinedu Onyilimba, company secretary, Universal Insurance said the transaction, once concluded, would enable the company to exceed its regulatory capital requirement while maintaining a robust solvency margin.
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