African Alliance Insurance Plc, once a prominent player in Nigeria’s insurance sector, has shut down as of August 1, 2024. The company’s headquarters, located at 54 Awolowo Road, Ikoyi, Lagos, has been closed, with the managing director and key staff reportedly abandoning their posts.
The shutdown follows years of financial difficulties, including the company’s inability to pay claims due to insolvency, leading to its current comatose state. The closure has exacerbated trust issues within the insurance industry, following recent failures of other notable companies like Niger Insurance and Standard Alliance Insurance Plc.
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Pensioners and policyholders are now facing severe challenges, with many owed billions in claims and unable to access their savings-backed policies. The office of African Alliance Insurance was found locked last week, and there is speculation that Mrs. Joyce Ojemudia may have resigned as managing director. The company’s website remains operational, misleading the public into purchasing policies despite the firm’s closure.
Experts have criticized the regulatory response, suggesting that the National Insurance Commission (NAICOM) has not adequately addressed the company’s issues, leading to the entrapment of pension funds under the Contributory Pension Scheme (CPS) managed by African Alliance.
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NAICOM issued a stern ultimatum to the company on July 5, 2024, demanding that it settle outstanding claims and submit a turnaround plan. In a statement, NAICOM expressed its commitment to enforcing professionalism and ensuring fair treatment of stakeholders. The commission had previously summoned the company’s board to Abuja and directed them to address the challenges promptly.
As the situation unfolds, stakeholders are left uncertain about the future of their claims and the regulatory measures to be taken against the distressed insurer.
