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Chuks Udo Okonta
The National Insurance Commission (NAICOM) said the appointed interim board and management of African Alliance Insurance Plc would within the one year turn around period of the ailing firm, ring fence the annuity portfolio, transfer the fund to a Pension Fund Custodian (PFC) to ensure continuous payment to annuitants.
The Commissioner for Insurance Olusegun Omosehin, said this at a press conference in Lagos, adding that the interim board and management have been mandated to conduct an actuarial evaluation to ascertain the true assets and liabilities of the firm.
He submitted that the interim board and management would also do a quick assessment of the firm’s available assets and seek how they can quickly convert the assets to liquidity, paving the way for settlements of outstanding liabilities.
According to him, the prospect of the assets being converted to liquidity is high as most of the assets are very lucrative.
NAICOM had on October 30, 2024 sacked the board and management of African Alliance Insurance Plc and appointed a 6-man team to turn around the company within one year.
The insurance industry regulation said
in the exercise of its regulatory powers, it sacked the Board and Management of African Alliance Insurance Plc following years of insolvency and failure to meet the obligations of annuitants and policyholders.
Omosehin said the Commission, as the primary regulator of the Insurance Sector, announced that it has taken over the Board and Management of African Alliance Insurance Plc, effective today, 30th October, 2024.
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, he said.
He submitted that the composition of the Interim Board is as follows:
1. Dr. Haruna Mustapha – Chairman
2. Mr. Jacob Erhabor – MD/CEO
3. Mr. Wasiu Amao – Executive Director, Technical
4. Ms. Oremeyi Longe – Executive Director, Finance
5. Mr. Anthony Achebe – Non-Executive
6. Haj. Halimatu M. Khabeeb – Non-Executive Director
He noted that the Interim Management Board would oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms.
The Commission will work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimize 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.
“The Commission is committed to maintaining the stability and integrity of Nigerian insurance industry. Our actions demonstrate our resolve to address concerns and protect the annuitants, policyholders and public interest,” he posited.
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