NAICOM dissolves African Alliance Insurance Plc board, management

• Appoints interim board

Business a.m.

The National Insurance Commission (NAICOM), exercising its regulatory powers, has dissolved the board and management of African Alliance Insurance Plc,one of Nigeria’s oldest life assurance companies. 

The decisive action follows years of financial instability and inability to meet the obligations of its annuitants and policyholders.

Olusegun Omosehin, the commissioner for insurance, made the disclosure during a press briefing in Lagos on Wednesday.

Acting within its regulatory powers, NAICOM also announced the takeover of African Alliance Insurance Plc’s board and management, effective today, Wednesday, 30th October 2024.

The decision to take over African Alliance Insurance Plc’s Board and Management was reached following a thorough monitoring and review of the company’s financial condition, governance, and operational practices by NAICOM.

The commission’s review revealed some concerns regarding the company’s ability to operate in a safe and sound manner, casting doubt on its capacity to honour annuitants’ claims and ensure timely payments to policyholders. This has been a long-standing issue for African Alliance Insurance Plc, leading to a growing sense of uncertainty among its stakeholders.

In response to the concerns identified during its review of African Alliance Insurance Plc, NAICOM has established an Interim Management Board to oversee the company’s affairs.

The newly appointed interim board, which will work to restore African Alliance Insurance Plc’s stability and soundness, is chaired by Haruna Mustapha, with Jacob Erhabor serving as the managing director/CEO.

Other members of the interim board include: Wasiu Amao, serving as the executive director, technical; Oremeyi Longe, filling the role of executive director, finance; Anthony Achebe, a non-executive director, and Halimatu M. Khabeeb, also a non-executive director. 

The interim management board, will be responsible for overseeing the day-to-day operations of African Alliance Insurance Plc, ensuring that the company remains compliant with all regulatory requirements, and implementing necessary reforms to restore stability and soundness.

In this regulatory intervention, NAICOM’s primary objective is to ensure that the interests of all parties involved with African Alliance Insurance Plc are protected.

The Commission seeks to safeguard the rights of the company’s annuitants, policyholders, and other stakeholders such as investors and employees, while also restoring stability and compliance within the insurance company itself.