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The document also listed the mandate of the commission as specified in the enabling law( NAICOM Act 1997), which is to discharge the following functions. To establish standards for the conduct of insurance business in Nigeria.
In the exercise of its regulatory powers, the National Insurance Commission (NAICOM) has sacked the Board and Management of African Alliance Insurance Plc, one of Nigeria’s oldest life assurance companies, following years of insolvency and failure to meet the obligations of annuitants to policyholders.
Segun Omosehin, commissioner for Insurance/CEO, NAICOM, who announced this Wednesday said,”As the primary regulator of the insurance sector, NAICOM has taken over the Board and Management of African Alliance Insurance Plc, effective today, 30th October, 2024.”
Omosehin 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: Haruna Mustapha – Chairman, and Jacob Erhabor – MD/CEO.
Others are: Wasiu Amao – Executive Director, Technical; Oremeyi Longe – executive director, Finance; Anthony Achebe, non-executive director, and Halimatu M. Khabeeb, non-executive director
The Interim Management Board will oversee the company’s operations, ensure compliance with regulatory requirements and implement necessary reforms.
The Commission said it will work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimise disruption and ensure continuity.
“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,” NAICOM noted.
The Commission said it 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,” Omosehin said.
