Barbara Bako, Abuja.
The National Insurance Commission (NAICOM) has returned the management of African Alliance Insurance Plc to a new board appointed by shareholders after an 18-month regulatory intervention that helped restore the company’s financial stability and settle outstanding obligations to policyholders.
The handover, announced at a formal ceremony, marks the end of a regulatory exercise that began in October 2024 when NAICOM stepped in to rescue the insurer from severe liquidity challenges, unsettled claims and annuity obligations, regulatory infractions and reputational concerns.
Speaking at the event, Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, said the intervention had succeeded in stabilising the company and protecting the interests of policyholders and annuitants.
He noted that the company’s recovery demonstrated the importance of proactive regulatory oversight in preserving confidence in the insurance industry.
Omosehin also highlighted the significance of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, describing it as a major step toward strengthening consumer protection and regulatory effectiveness in the sector.
According to him, one of the key innovations under the law is the Insurance Policyholders Protection Fund (IPPF), established to provide financial relief to policyholders in cases of insurer distress, insolvency or liquidation.
He said the fund would help reduce uncertainty for policyholders and ensure quicker settlement of legitimate claims in future cases involving troubled insurance firms.
The NAICOM chief urged the newly constituted board of African Alliance Insurance Plc to uphold sound corporate governance, maintain regulatory compliance and strengthen transparency in its operations.
He also directed the board to improve governance structures, restructure portfolios, reconcile policyholder records and reinforce accountability across the organisation.
Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, expressed appreciation to NAICOM for its support throughout the intervention period and expressed confidence in the ability of the new board to consolidate on the gains achieved.
During the intervention, the NAICOM-appointed Interim Management Board implemented several measures aimed at restoring the insurer’s financial health.
Among the achievements recorded were the recovery of trapped dividend funds and other inflows that enabled the settlement of substantial annuity arrears and legacy claims, easing the burden on policyholders and retirees.
The board also carried out strategic asset sales to unlock liquidity, facilitated the transfer of the company’s annuity portfolio to another underwriting institution, completed forensic and actuarial reviews, addressed regulatory compliance issues and strengthened operational systems.
NAICOM said the intervention also helped resolve legal disputes affecting dividend income, conclude outstanding audits and prepare the company for compliance with IFRS 17 reporting standards.
Despite the handover, the commission stated that African Alliance Insurance Plc would remain under close regulatory supervision as its solvency position, recapitalisation efforts and compliance with prudential requirements continue to be monitored.
The company now has a new leadership team, with Mr. Abayomi Olakunle Ogunkeye appointed Managing Director and Rear Admiral Anthony Odogba Isa named Chairman of the Board.
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