Universal Insurance Boss Retires as Tenure Limit Policy is Enforced

As the enforcement of the 10-year tenure limit for the managing directors/chief executive officers and executive directors of insurance and reinsurance firms commences, the MD/CEO, Universal Insurance  Plc, Mr.  Ben Ujoatuonu, has been directed to proceeded on retirement leave. 

The industry regulator, National Insurance Commission (NAICOM),  had queried Universal Insurance  for its failure to adhere to the policy and threatened to impose stiff regulatory sanction, if nothing was done.

In a letter sent to the company, NAICOM ordered Universal Insurance to suspend Ujoatuonu immediately and provide evidence within seven working days. 

The commission also mandated Executive Director of Operations, Dr. Japhet Duru,  to take the reins as acting Managing Director for 90 days.

In the letter titled, ‘Regulatory Directive-Enforcement Of Tenure Limit For Executive Director of Insurance and Reinsurance Companies in Nigeria.’  

The regulator said it  has observed that “you have not responded to the letter neither have you taken any action against the executive in questions. In consequences of the foregoing, the board is hereby directed by the commission to: immediately suspend the MD/CEO, Mr Ujoatuonu Benedict Ugochukwu and forward evidence of same to the Commission within seven working days  from the date of receipt of the letter.

“Mandate the Executive Director, Technical to take over the running of affairs of the company for a period of 90days within which a substantive MD/CEO will be presented to the commission for approval.”

 Universal Insurance was said to have  apologised for its oversight, citing a truncated transition process and the sudden resignation of its former Technical Operations Executive Director.

 “We, however, pressed on with the search for suitable persons to man the positions mindful that given the growth we have achieved in recent times, we needed to put the right people in place to maintain the tempo. It was only recently that we received the commission’s approval for a new ED, Technical Operations,” the company explained.

Operators and analysts have said that NAICOM’s latest move  has sent  a clear message that strict compliance is non-negotiable.

With NAICOM’s watchdog role intensifying, industry players are bracing for further shake-ups. 

While the regulator has queried other companies affected, there were indications that NAICOM will take sterner action against the affected companies. Hence, some underwriters are currently shopping for replacement for those who have spent 10 years or more.