African Alliance Insurance Gets New Board as NAICOM Concludes Rescue Programme

The National Insurance Commission (NAICOM) has handed over 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 development was announced in a statement issued by NAICOM, which said the handover followed the successful conclusion of an intervention that began in October 2024 after the company encountered severe liquidity challenges, mounting annuity obligations, regulatory infractions and reputational concerns that threatened its operations.

NAICOM said it had at the time appointed an Interim Management Board (IMB) and management team with the mandate to stabilize the company, improve liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and rebuild stakeholder confidence.

Speaking during the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said the transfer of control represented a significant milestone in the company’s recovery and repositioning for sustainable growth.

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Omosehin highlighted the role of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 in strengthening regulatory oversight and enhancing consumer protection within the insurance sector.

According to him, one of the major innovations introduced by the law is the Insurance Policyholders Protection Fund (IPPF), designed to provide financial relief to policyholders in cases of insurer distress, insolvency or liquidation.

He noted that if the fund had existed before African Alliance’s financial difficulties, it would have helped cushion the impact on policyholders by facilitating the timely settlement of claims and annuity obligations.

The insurance commissioner charged the new board to uphold sound corporate governance, maintain regulatory compliance and sustain policyholder confidence through prompt claims settlement and prudent management practices.

He also directed the board to strengthen governance structures, restructure business portfolios, reconcile policyholder records and improve transparency and 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 that the new board would build on the progress already achieved.

According to NAICOM, the interim board recorded several milestones during its tenure, including the restoration of liquidity through the recovery of trapped dividend funds and other inflows, which enabled the settlement of substantial annuity arrears and legacy claims.

The commission said the board also executed the sale of 49 per cent of the company’s stake in an investment, unlocking funds to meet pressing liabilities and operational requirements.

It further facilitated the transfer of the company’s admitted annuity portfolio to another underwriting institution to ensure continuity of payments to beneficiaries while easing liquidity pressures on African Alliance.

Other achievements listed by the commission included the completion of forensic and actuarial audits, resolution of regulatory compliance issues, settlement of selected legacy liabilities, remediation of information technology vulnerabilities and preparations for compliance with International Financial Reporting Standard (IFRS) 17.

Despite the handover, NAICOM said African Alliance Insurance Plc would remain under close regulatory supervision as the commission continues to monitor its solvency position, recapitalisation efforts and compliance with prudential standards.

The company now has a new leadership team, with Mr. Abayomi Olakunle Ogunkeye appointed as Managing Director, while Rear Admiral Anthony Odogba Isa will serve as Chairman of the Board.

The report is based on a statement issued by the National Insurance Commission (NAICOM).