The National Insurance Commission (NAICOM) has sacked the board and management of African Alliance Insurance Plc for years of insolvency and failure to meet the obligations of annuitants and policyholders.
NAICOM disclosed this in a statement issued in Abuja on Wednesday, noting that the decision followed extensive monitoring and review of the company’s financial condition, governance, and operational practices.
The insurance regulator said the review revealed significant concerns regarding the company’s ability to continue operation in a safe and sound manner.
The Commission said the company’s state had for some time generated a lot of uncertainty over claims settlement and payment to annuitants under the company.
Interim management appointed
The Commission said it had appointed an interim management board to manage the affairs of the company.
- It listed Dr Haruna Mustapha as the Chairman, Mr. Jacob Erhabor as the Managing Director, Mr Wasiu Amao as the Executive Director, Technical.
- Others are Ms Oremeyi Longe as Executive Director, Finance, Mr Anthony Achebe as Non-Executive Director and Halimatu Khabeeb also as Non-Executive Director.
- The Commission said that the interim management board would oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms.
- The Commission said it would work with all stakeholders, including annuitants, policyholders, employees, and investors, to minimise disruption and ensure continuity.
Why NAICOM took action
Explaining the rationale for sacking the board and management of the oldest insurance companies in the country, the insurance regulator said:
“The objective of this takeover is to protect the interests of African Alliance Insurance Plc’s annuitants, policyholders, other stakeholders, and the broader insurance industry, while ensuring the company’s return to stability and compliance.
“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.”
What you should know
NAICOM was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation, and control of the insurance business in Nigeria and the protection of insurance policyholders, beneficiaries and third parties to insurance contracts.
NAICOM’s responsibilities include regulating the insurance business; regulating transactions between insurers and reinsurers; establishing and maintaining standards for the Nigerian insurance sector; regulating rates of insurance premiums and commissions; developing protection measures for government assets; and advising the government on insurance matters.
The Commission said its goal is to build a safe and stable insurance industry competing globally and contributing optimally to Nigeria’s economy.
