NAICOM revokes operational licence of UNIC Insurance

The National Insurance Commission (NAICOM) says it has cancelled the operational licence issued to UNIC Insurance Plc.

In a statement on Wednesday, NAICOM said the company’s licence has been withdrawn from operating as an insurance firm.

Although, the commission did not give any reason for the cancellation, it said the decision was in exercise of the powers conferred on it by enabling laws.

It explained that it had appointed Hadiza Baba Gimba as the receiver/liquidator to wind-up the affairs of the company.

“The general public/policy holders are by this notice required to direct all enquiries and correspondence regarding UNIC Insurance to the receiver/liquidator,” it said.

“The receiver/liquidator will be dealing with the company’s liabilities in accordance with the provision of Insurance Act 2003.”

The commission said the licence, RIC 043, was revoked with effect from March 25, 2021.

In 2007, NAICOM had issued an operational licence to UNIC Insurance as a certified life insurance company.

However, the commission took over the operations of the company in 2018 to reposition it for better performance.

It appointed a four-man interim board to manage the affairs of UNIC Insurance for a period of six months in order to rescue it from distress as the company had been unable to pay claims to policyholders and had weak financial result.

The interim board appointed was to conduct a forensic audit on UNIC Insurance financial position as well as point out the corporate governance failures observed in the course of reviewing the financial statements of the company.

NAICOM explained that the take over was to ensure safety of policyholders’ investment as well as sanitise the insurance industry.