The National Insurance Commission (NAICOM) has sacked the entire board and management of African Alliance Insurance Plc following the inability of the insurer to pay its huge unpaid annuity and claims running into several billions of Naira to policyholders.
The development, which took effect yesterday, 30th of October, 2024, according to NAICOM, was to bring sanity into the system and ensure that the unpaid annuity and claims are paid to the affected policyholders.
Speaking at a press briefing in Ikoyi, Lagos yesterday, the commissioner for Insurance/CEO, NAICOM, Segun Omosehin, announced that an interim board will be taking over starting from today, to be chaired by Dr. Haruna Mustapha, who was a former Director in the Central Bank of Nigeria(CBN), until, he retired from the apex bank in June, 2024.
Similarly, Jacob Erhabor becomes the new managing director/CEO; Oremeyi Longe as the executive director, Finance; Wasiu Amao as the executive director, Technical, while Anthony Achebe and Haj. Halimatu M. Khabeeb, non-executive directors, are on the board and management of the new team.
Omosehin said, the new board has an initial turnaround time of six months which can also be renewed for another six months to change the current fortune of the company.
To him, “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.”
Stating that, the Interim management board will oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms, he added that, the commission 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 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 the Nigerian insurance industry. Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders and public interest,” he pointed out.
