By LOVETH AZODO, Lagos
The National Insurance Commission (NAICOM) has formally returned African Alliance Insurance Plc to a newly constituted board nominated by shareholders, bringing to a close an 18-month regulatory intervention that rescued the troubled insurer from financial distress.
The handover marks a significant milestone in the commission’s efforts to restore stability in the company, protect policyholders and annuitants, and reposition one of Nigeria’s oldest life insurers for sustainable growth.
The intervention, which commenced in October 2024, followed severe liquidity challenges, a backlog of unsettled claims and annuity obligations, regulatory breaches, and reputational issues that threatened the company’s continued existence and undermined public confidence.
Speaking at the handover ceremony, Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, said the exercise had achieved its primary objective of stabilising the company and restoring confidence among stakeholders.
He noted that the recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 had strengthened regulatory oversight and consumer protection through the establishment of the Insurance Policyholders Protection Fund (IPPF), designed to provide financial relief to policyholders in cases of insurer distress, insolvency, or liquidation.
According to him, had the fund been operational before African Alliance’s crisis, it would have played a critical role in cushioning the impact on policyholders by facilitating prompt settlement of legitimate claims and annuity obligations.
Omosehin charged the new board to uphold high standards of corporate governance, strengthen transparency and accountability, restructure portfolios, reconcile policyholder records, and sustain confidence through prompt claims settlement and prudent solvency management.
During the intervention period, the NAICOM-appointed Interim Management Board restored liquidity by unlocking trapped dividend funds and other inflows, enabling the settlement of substantial annuity arrears and legacy claims.
It also completed forensic and actuarial audits, addressed regulatory breaches, strengthened operational systems, and facilitated the transfer of the company’s admitted annuity portfolio to a capable underwriting institution to ensure continuity of payments to beneficiaries.
Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, expressed appreciation to NAICOM for its support throughout the intervention and expressed confidence that the new board would consolidate the gains achieved and maintain strong corporate governance and regulatory compliance.
NAICOM, however, stressed that despite the handover, African Alliance Insurance Plc would remain under close regulatory oversight as the commission continues to monitor its solvency levels, recapitalisation progress, and compliance with prudential standards.
Meanwhile, the company has appointed Mr. Abayomi Olakunle Ogunkeye as Managing Director, while Rear Admiral Anthony Odogba Isa has emerged as Chairman of the Board.
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