By Abiodun Folarin
WorldStage– The National Insurance Commission (NAICOM) has formally transferred the management of African Alliance Insurance Plc to a newly constituted Board nominated by the company’s shareholders, marking the end of an 18-month regulatory intervention aimed at restoring the insurer’s financial stability and protecting policyholders.
The handover, announced on Tuesday, follows a stabilization programme that began in October 2024 when NAICOM intervened in the affairs of the company over severe liquidity challenges, a backlog of unsettled claims and annuity obligations, regulatory breaches, and declining public confidence.
Speaking at the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, said the intervention had successfully repositioned the company for sustainable growth while safeguarding the interests of policyholders and annuitants.
Omosehin noted that the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 would further strengthen regulatory oversight, boost public confidence, and deepen insurance penetration across the country.
He highlighted the establishment of the Insurance Policyholders Protection Fund (IPPF) under the Act, describing it as a landmark consumer protection mechanism designed to provide financial relief to policyholders in cases of insurer distress, insolvency, or liquidation.
According to him, the fund would have significantly reduced the hardship experienced by policyholders during African Alliance’s crisis if it had been operational at the time.
“The Insurance Policyholders Protection Fund represents a major step forward in protecting policyholders and aligning Nigeria’s insurance regulatory framework with international best practices,” he said.
The Commissioner charged the newly appointed Board to maintain high standards of corporate governance, transparency, and regulatory compliance while prioritising prompt claims settlement and prudent solvency management.
He also directed the Board to strengthen governance structures, restructure portfolios, update policyholder records, and reinforce accountability across the organisation.
The new leadership team comprises Mr. Abayomi Olakunle Ogunkeye as Managing Director and Rear Admiral Anthony Odogba Isa as Chairman of the Board.
In his remarks, Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, expressed appreciation to NAICOM for its support throughout the intervention period and expressed confidence that the new Board would build on the reforms already implemented.
NAICOM said the Interim Management Board achieved several milestones during its tenure, including restoring liquidity through the recovery of trapped dividend funds and other inflows, enabling the settlement of substantial annuity arrears and legacy claims.
The intervention team also successfully executed the sale of 49 per cent of the company’s stake in an investment, unlocking additional funds to meet liabilities and operational requirements.
Other achievements included the transfer of the admitted annuity portfolio to another underwriting institution to ensure uninterrupted payments to beneficiaries, completion of forensic and actuarial audits, resolution of regulatory compliance issues, settlement of selected legacy liabilities, and preparations for compliance with International Financial Reporting Standard (IFRS) 17.
The Board also implemented key operational reforms, including addressing ICT vulnerabilities and maintaining essential business operations to preserve enterprise value and prepare the insurer for a fresh start.
Despite the handover, NAICOM said African Alliance Insurance Plc would remain under close regulatory supervision as the commission continues to monitor the company’s solvency position, recapitalisation efforts, and compliance with prudential requirements.
The commission described the transition as a major step toward strengthening confidence in Nigeria’s insurance industry and ensuring long-term protection for policyholders.
