NAICOM sacks board, management of African Alliance Insurance

In the exercise of its regulatory powers, the National Insurance Commission (NAICOM) has sacked the Board and Management of African Alliance Insurance Plc, one of Nigeria’s oldest life assurance companies, following years of insolvency and failure to meet the obligations of annuitants and policyholders.

The Commission, as the primary regulator of the Insurance Sector, announced on Wednesday that it has taken over the Board and Management of African Alliance Insurance Plc, effective, 30th October 2024.

The NAICOM said this decision follows an extensive monitoring and review of the company’s financial condition, governance, and operational practices, which revealed significant concerns regarding its ability to continue operating in a safe and sound manner which has for some time now generated a lot of uncertainty over claims settlement and payment to annuitants under the company.

The Commission added that it has therefore appointed an Interim Management Board to manage the affairs of African Alliance Insurance Plc.

The composition of the Interim Board is as follows: Dr. Haruna Mustapha – Chairman;
Mr. Jacob Erhabor – MD/CEO; Mr. Wasiu Amao – Executive Director, Technical;
Ms. Oremeyi Longe – Executive Director, Finance; Mr. Anthony Achebe – Non-Executive, and Haj. Halimatu M. Khabeeb – Non-Executive Director.

According to the NAICOM, the Interim Management Board will oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms.

It highlighted that the Commission will work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimize disruption and ensure continuity.

The objective of this takeover, it stressed, is to protect the interests of African Alliance Insurance Plc annuitants, policyholders, other stakeholders, and the broader insurance industry, while ensuring the company’s return to stability and compliance.

The Management pointed out that “The Commission is committed to maintaining the stability and integrity of Nigerian insurance industry. Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders and public interest.”