NAICOM Hands Over African Alliance Insurance To New Board After 18 Months

The National Insurance Commission (NAICOM) has formally handed over the management of African Alliance Insurance Plc to a newly constituted Board nominated by the company’s shareholders, bringing to an end an 18-month regulatory intervention aimed at rescuing the troubled insurer.

The transition marks a major step in the company’s recovery after a period of severe financial and operational difficulties that threatened its survival and eroded policyholder confidence.

NAICOM had intervened in the affairs of African Alliance Insurance in October 2024 following mounting liquidity challenges, a backlog of unpaid claims and annuity obligations, as well as regulatory infractions that raised concerns about the insurer’s ability to continue operations.

To stabilize the company, the Commission appointed an Interim Management Board (IMB) and an interim management team with the mandate to restore liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and rebuild stakeholder confidence.

Speaking at the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, described the transfer of operational control as a significant milestone in restoring the financial health of the insurer and protecting the interests of policyholders and annuitants.

He said the intervention had achieved its core objectives and positioned the company for sustainable growth under a new leadership structure.

Omosehin also highlighted the importance of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, noting that the legislation has strengthened regulatory oversight and enhanced consumer protection across the insurance industry.

According to him, one of the most significant innovations under the Act is the establishment of the Insurance Policyholders Protection Fund (IPPF), designed to provide financial support to policyholders in cases of insurer distress, insolvency or liquidation.

He stated that if the fund had existed before African Alliance Insurance encountered its challenges, it could have helped cushion the impact on policyholders by facilitating prompt settlement of valid claims and annuity obligations.

The insurance regulator charged the newly inaugurated Board to maintain high standards of corporate governance, transparency and regulatory compliance while working closely with shareholders to consolidate the gains achieved during the intervention period.

He urged the Board to prioritise prompt claims settlement, sound solvency management and prudent business practices in order to sustain public confidence in the company.

NAICOM further directed the Board to strengthen governance structures, restructure business portfolios, reconcile policyholder records and reinforce accountability across the organization.

During the intervention period, the Interim Management Board recorded several achievements, including the restoration of liquidity through the recovery of trapped dividend funds and other inflows.

The recovered funds enabled the company to settle a substantial backlog of annuity arrears, which at one stage had accumulated for up to 15 months, as well as numerous outstanding legacy claims.

The board also executed the sale of 49 per cent of the company’s stake in an investment asset, generating funds that were used to meet pressing liabilities and operational obligations.

In addition, the IMB facilitated the transfer of the company’s admitted annuity portfolio to another underwriting institution to ensure uninterrupted payments to beneficiaries while easing liquidity pressures.

The intervention team also completed forensic and actuarial audits, resolved outstanding regulatory issues, addressed legal disputes affecting dividend income, and advanced preparations for compliance with IFRS 17 reporting standards.

Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, expressed appreciation to NAICOM for its support throughout the intervention period and expressed confidence that the new Board would sustain the reforms already implemented.

NAICOM stated that despite the handover, African Alliance Insurance will remain under close regulatory supervision as the Commission continues to monitor its solvency position, recapitalisation efforts and compliance with prudential requirements.

The company’s new leadership team is headed by Abayomi Olakunle Ogunkeye as managing director, while Rear Admiral Anthony Odogba Isa assumes office as Chairman of the Board.