Since the enforcement of 10-year tenure limit policy commenced on the 1st of January, 2024, no fewer than eight insurance firms’ managing directors/CEOs and about 10 other executive directors in the insurance industry have resigned from their positions, LEADERSHIP learnt.
The affected CEOs have since vacated and retired from their position, following a renewed enforcement of the policy by the National Insurance Commission (NAICOM).
To this end, the eight insurance operators have had their position currently being taken over in acting capacity or whose successor had already been confirmed as the new sheriff in town, investigation revealed.
The policy has forced changes in the CEO of Leadway Assurance, Consolidated Hallmark Insurance, NEM Insurance, GNI, Sterling Assurance, Capital Express Assurance, Universal Insurance Plc, among others.
A couple of weeks ago, the managing director/CEO, Universal Insurance Plc, Ben Ujoatuonu became the latest casualty as he was retired by the policy while an acting managing director has taken over for the next 90 days as stipulated in the Tenure Limit policy.
Industry sources reveal that Ujoatuonu is now on retirement leave as the head of the Technical Operation has taken charge in acting capacity, a direct result of the National Insurance Commission(NAICOM’s) crackdown on non-compliant insurers.
The regulatory body had queried the concerned underwriter for its failure to adhere to the policy and threatened to impose stiff regulatory sanction if nothing was done.
In a letter sent to the company, NAICOM ordered Universal Insurance to suspend Ujoatuonu immediately and provide evidence within seven working days.
The commission also mandated Dr. Japhet Duru, executive director of Operations, to take the reins as acting managing director for 90 days.
In the letter titled, ‘Regulatory Directive-Enforcement Of Tenure Limit For Executive Director of Insurance and Reinsurance Companies In Nigeria,’ and sighted by LEADERSHIP, the regulator said, it has observed that “you have not responded to the letter neither have you taken any action against the executive in questions. In consequence of the foregoing , the board is hereby directed by the commission to: Immediately suspend the MD/CEO, Ujoatuonu Benedict Ugochukwu and forward evidence of the same to the Commission within seven working days from the date of receipt of the letter.
“Mandate the executive director, Technical to take over the running of affairs of the company for a period of 90 days within which a substantive MD/CEO will be presented to the commission for approval.”
To this end, Universal Insurance apologised for its oversight, citing a truncated transition process and the sudden resignation of its former Technical Operations Executive Director. It added that, “We, however, pressed on with the search for suitable persons to man the positions mindful that given the growth we have achieved in recent times, we needed to put the right people in place to maintain the tempo. It was only recently that we received the commission’s approval for a new ED, Technical Operations.”
Earlier, for Leadway Assurance Company Limited, Mr. Tunde Hassan-Odukale and Ms. Adetola Adegbayi, who were both MD/CEO and executive director, Technical, have left their position which were now taken over by Gboyega Lesi and Mrs. Oluwafunmilayo Amanwa respectively.
Similarly, Eddie Efekoha has left his position as the MD/CEO, of Consolidated Hallmark Insurance to take up the group CEO position at Consolidated Hallmark Holdings(CHH) Plc in a Holding structure that the company now operates, thereby, allowing Mary Adeyanju assumes the position of the MD/CEO of Consolidated Hallmark Insurance Limited having been elevated from her former position as ED, Operations, a position that Jimalex Orjiako now occupies.
At Capital Express Assurance Limited, Mathew Ogwezhi has now assumed the position of the managing director/CEO, following the exit of former MD/CEO, Bola Odukale. Similarly, Gbenga Owodunni assumed the position of the deputy managing director/COO) after the former left due to the tenure policy,
For NEM Insurance Plc, Andrew Ikekhua has taken over the position of the managing director/CEO, NEM Insurance Plc from Tope Smart who has now assumed the position of the chairman of the insurance firm as these appointments have been approved by NAICOM.
Meanwhile, Cecilia Osipitan, it was learnt, has vacated her position as the managing director/CEO of Great Nigeria Insurance(GNI) to become the Group CEO in a planned holding structure while Mrs. Roselyn Ulaeto is the acting managing director/CEO.
Sterling Assurance, it was learnt, also has a new MD/CEO after the former boss, Dr. Fatai Kayode Lawal left his position earlier in the year.
Investigation revealed that while the regulator has queried other companies affected, there were indications that NAICOM will take sterner action against the affected companies. Hence some underwriters are currently shopping for replacement for those who have spent 10 years or more.
NAICOM through the policy enforcement, said, it is exercising its powers under the National Insurance Commission(NAICOM) Act 1997 and in line with the Nigerian code of Corporate Governance 2018, noting that, the maximum tenure for executive directors of insurance and reinsurance companies operating in Nigeria, is needed to sanitise the industry and ensure the sector continues to operate with international best practices.
According to NAICOM, “CEOs and other EDs shall serve a maximum tenure of 10 years, comprising of terms of 5 years each, subject to single approval of the commission; the tenure for an ED who becomes a CEO in the same company shall serve a cumulative tenure not exceeding 15 years and where an ED changes portfolio by moving to another position of ED equivalent within the same company, the period spent in previous position will count for the purpose of determining maximum tenures.”
The circular, signed by the then director, Policy and Regulation, L.M Abah, for the then commissioner of insurance, Mr Sunday Thomas, added that, where an insurance company is a product of merger, acquisition, takeover or any other combination, the 10-year period shall include the pre and post combination service years as CEO or as ED.
The current commissioner for Insurance/CEO, the National Insurance Commission(NAICOM), Segun Omosehin has recently promised to continue the enforcement of this policy in a move that will ensure new bloods that can take the industry to its promised land, are injected.
He said the policy is not in bad faith but to enhance corporate governance and succession plans in the insurance industry in the country.
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