Universal Insurance Plc solvency ratio has remained resilient in the face of macro uncertainties, which indicates the insurer is well capitalised with strong buffers against claims and gyrations in the capital market.
The solvency margin ratio of Universal Insurance stood at 235.94 percent as at December 2025, according to MoneyCentral calculations.
Simply put, the company’s solvency margin of N7.22 billion(which is excess of admissible assets over admissible liabilities) is higher than minimum paid up capital of N3 billion.
A strong solvency margin ratio indicates an insurer has the financial strength to meet its obligations to policyholders or other liabilities without undermining its capital position.
Of course, investors and regulators are paying attention to the capital position of the insurer and their ability to weather macro challenges given the new regulatory capital requirement by the National Insurance Commission (NIA).
The regulator wants to ensure that sector players are well capitalised so as to take on more big ticket transactions needed to bolster earnings and deliver a higher return to shareholders in the form of capital appreciation and bumper dividend.
To meet the new requirements, Universal Insurance has initiated processes for a N3.2 billion Rights Issue. The company has also been authorized by shareholders to raise up to N15 billion through various instruments, including public offerings and private placements, if necessary.
Rising costs wipeout gains of revenue grows as profit slumps
Universal Insurance is reeling from rising operating costs that hindered the top line impressive (sales) performance to translate into bottom line (profit) growth.
For instance, profit after tax (PAT) dipped by 3.98 percent to N1.98 billion in December 2025 from N2.01 billion the previous year.
Insurance revenue spiked 48.47 percent to N20.43 billion in the period under review from N13.76 billion the previous year.
It appears investors do not have confidence in the company’s growth prospects as its shares have shed -14.17 percent since the start of the year, underperforming the NGXASI index’s 46.78 percent.
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