The National Insurance Commission (NAICOM) has dismissed the Board and management of African Alliance Insurance Plc, one of Nigeria's oldest life insurance firms, due to years of insolvency and inability to fulfill obligations to annuitants and policyholders.
As the main regulator of the insurance sector, NAICOM announced it has assumed control of the company's Board and Management, effective Wednesday.
In a statement released on Wednesday, the commission 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 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.”
The insurance regulators mentioned that the interim management board would oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms.
Furthermore, NAICOM affirmed that it would work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimise disruption and ensure continuity.
Meanwhile, 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, also made the disclosure during a press briefing in Lagos on Wednesday.
