NAICOM sacks African Alliance Insurance leadership over insolvency issues

The National Insurance Commission (NAICOM) has removed the board and management of African Alliance Insurance Plc, citing ongoing financial instability and unmet obligations to annuitants and policyholders. The Commissioner for Insurance, Segun Omosehin, announced the decision at a press briefing held at NAICOM’s Lagos office.

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During a press briefing at NAICOM’s Lagos office, Commissioner for Insurance Segun Omosehin explained that “this decision follows an extensive monitoring and review of the company’s financial condition, governance, and operational practices, which revealed significant concerns regarding its ability to continue operating safely and soundly.”

He noted that these issues had caused “uncertainty over claims settlement and payment to annuitants under the company.”

As part of its intervention, NAICOM has appointed an interim board and management, effective immediately. The new leadership team includes Dr. Haruna Mustapha as Chairman and Mr. Jacob Erhabor as MD/CEO, along with other executives. Omosehin stated, “The Commission has therefore appointed an Interim Management Board to manage the affairs of African Alliance Insurance Plc,” with a mandate to oversee operations, enforce compliance with regulatory standards, and initiate necessary reforms.

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In support of policyholders, NAICOM pledged to “work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimise disruption and ensure continuity.”

The primary objective, according to Omosehin, is “to protect the interests of African Alliance Insurance Plc annuitants, policyholders, other stakeholders, and the broader insurance industry while ensuring the company’s return to stability and compliance.”

This takeover, NAICOM affirmed, is in line with its commitment to maintain “the stability and integrity of the Nigerian insurance industry,” adding, “Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders, and public interest.”