NAICOM Takes Over African Alliance Insurance, Sacks Board and Management

In a bold move to protect policyholders and annuitants, the National Insurance Commission (NAICOM) has taken over the board and management of African Alliance Insurance Plc, effective October 30, 2024. This decision follows years of insolvency and failure to meet obligations by the company.

Reasons for Takeover

NAICOM’s Commissioner for Insurance, Segun Omosehin, cited African Alliance’s persistent inability to settle claims, inadequate capitalization, and poor corporate governance as primary reasons for the takeover. The commission’s action aims to safeguard the interests of annuitants, policyholders, and other stakeholders.

Interim Management Board

To steer the company back to stability, NAICOM has appointed an interim management board:

– Haruna Mustapha – Chairman

– Jacob Erhabor – MD/CEO

– Wasiu Amao – Executive Director, Technical

– Oremeyi Longe – Executive Director, Finance

– Anthony Achebe – Non-Executive Director

– Halimatu M. Khabeeb – Non-Executive Director

NAICOM’s Objectives

The takeover aims to:

1. Protect policyholders’ and annuitants’ interests

2. Ensure compliance with regulatory requirements

3. Implement necessary reforms

4. Restore African Alliance’s financial stability

5. Maintain the integrity of the Nigerian insurance industry

Implications and Next Steps

The takeover is expected to:

1. Enhance policyholders’ confidence

2. Improve claims settlement

3. Strengthen corporate governance

4. Attract new investments

NAICOM has assured stakeholders that the interim management board will work closely with the company’s staff to ensure a seamless transition.

Reaction from Industry Stakeholders

Industry experts have welcomed NAICOM’s decisive action, citing it as a necessary step to safeguard the sector’s reputation and protect policyholders.

Conclusion

NAICOM’s takeover of African Alliance Insurance Plc demonstrates the commission’s commitment to maintaining the stability and integrity of the Nigerian insurance industry. As the interim management board works to revamp the company, policyholders and annuitants can expect improved services and increased confidence in the industry.