In a decisive regulatory move, the National Insurance Commission (NAICOM) has announced the takeover of the Board and Management of African Alliance Insurance Plc, one of Nigeria’s oldest life assurance providers, citing prolonged financial instability and the company’s inability to meet policyholder obligations.
This intervention, effective from October 30, 2024, follows an extensive review of the company’s financial health and operational practices by NAICOM, which identified significant governance and solvency issues.
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The Commission, serving as the main regulatory authority for Nigeria’s insurance industry, appointed an Interim Management Board to lead the company, safeguard policyholder interests, and restore operational stability. The Interim Board will be led by Dr. Haruna Mustapha as Chairman, with Mr. Jacob Erhabor as Managing Director/CEO, and includes both technical and financial expertise with members like Mr. Wasiu Amao as Executive Director, Technical, and Ms. Oremeyi Longe as Executive Director, Finance. The board is also joined by non-executive directors, Mr. Anthony Achebe and Haj. Halimatu M. Khabeeb.
NAICOM stated that this intervention aims to stabilize African Alliance Insurance’s operations, ensure compliance with regulatory standards, and minimize service disruption. “Our objective is to protect the interests of annuitants, policyholders, employees, and the broader insurance sector,” the Commission emphasized.
The regulatory body also reaffirmed its commitment to maintaining the integrity of Nigeria’s insurance industry, stressing that this move aligns with its goal to uphold public confidence and security in the insurance sector. NAICOM’s management underscored that they will work closely with all relevant stakeholders to support continuity in the company’s services and address ongoing challenges.
This takeover represents a proactive step by NAICOM to ensure accountability, safeguard policyholders’ interests, and maintain industry stability in response to rising concerns about African Alliance Insurance’s financial performance and claim payments.
