By Onu Okorie

The National Insurance Commission NAICOM has formally transferred operational control of African Alliance Insurance Plc to a newly constituted Board nominated by the company’s shareholders, following the successful conclusion of a regulatory intervention that commenced in October 2024. This was contained in a statement made available to the media yesterday in Abuja.

The statement explained that the handover marks a significant milestone in restoring the company’s financial stability, safeguarding the interests of policyholders and annuitants, and repositioning the organization for sustainable growth.

It would be recalled that in October 2024, NAICOM intervened in African Alliance Insurance Plc after the company faced severe liquidity challenges, a backlog of unsettled claims particularly annuity obligations regulatory breaches, and reputational damage that threatened its continued existence and undermined policyholder confidence.

To address these challenges, NAICOM appointed an Interim Management Board (IMB) and an interim management team, with a clear mandate to stabilize the company, unlock liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and restore stakeholder confidence.

Speaking during the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, highlighted the transformative impact of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025. He noted that the legislation strengthens regulatory oversight, enhances public confidence, and supports deeper insurance penetration in Nigeria.

A major milestone under the Act is the establishment of the Insurance Policyholders Protection Fund (IPPF) a landmark mechanism designed to provide financial relief to policyholders in the event of insurer distress, insolvency, or liquidation. The Fund represents a significant advance in consumer protection and aligns Nigeria’s regulatory framework with global best practices.

Mr. Omosehin observed that if the IPPF had been operational prior to the challenges that affected African Alliance Insurance Plc, it could have played a critical role in cushioning the impact on policyholders by facilitating the timely settlement of legitimate claims and annuity obligations. This, he noted, would have reduced uncertainty and strengthened confidence during the transition period.

The Commissioner charged the newly constituted Board OF Directors to work collaboratively with shareholders while upholding the highest standards of corporate governance, regulatory compliance, and operational transparency. He emphasized the importance of sustaining policyholder confidence through prompt claims settlement, sound solvency management, and prudent business practices.

He further directed the Board to: Strengthen corporate governance structures; Restructure portfolios; Update and reconcile policyholder records and Reinforce transparency and accountability.

In his remarks, Dr. Haruna Mustapha, Chairman of the outgoing Interim Management Board, expressed appreciation to NAICOM for its guidance and support throughout the intervention period. He assured stakeholders that the new Board would build on the progress achieved and sustain a culture of regulatory compliance, sound risk management, and strong corporate governance.

The Company now have a new Managing Director in the person of Mr. Abayomi Olakunle Ogunkeye and a new Chairman in the person of Rear Admiral Anthony Odogba Isa.