The National Insurance Commission (NAICOM) has dismissed the Board and management of African Alliance Insurance Plc, one of Nigeria’s longest-standing life insurance providers, due to persistent insolvency issues and failure to fulfil obligations to policyholders and annuitants.
Insolvency is when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe
News About Nigeria reports that this regulatory action follows years of financial difficulties for the company.
In a statement issued Wednesday, NAICOM announced its decision to assume control of African Alliance Insurance Plc.
As part of this intervention, NAICOM has appointed an Interim Management Board to steer the company’s affairs, comprising: Dr. Haruna Mustapha, Chairman; Mr. Jacob Erhabor, Managing Director/CEO; Mr. Wasiu Amao, Executive Director, Technical; Ms. Oremeyi Longe, Executive Director, Finance; Mr. Anthony Achebe, Non-Executive Director; and Haj. Halimatu M. Khabeeb, Non-Executive Director.
The interim board is tasked with overseeing African Alliance’s operations, ensuring adherence to regulatory standards, and implementing necessary reforms to restore financial stability.
NAICOM also pledged to collaborate with key stakeholders, including policyholders, annuitants, employees, and investors, to ensure minimal disruption and smooth continuity during this transition period.
“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,” NAICOM stated.
