The National Insurance Commission (NAICOM) has dismissed the board and management of African Alliance Insurance Plc, appointing an interim board to ensure the stability and integrity of the company. This decision, announced by the Commissioner for Insurance, Olusegun Omosehin, aims to protect policyholders’ interests and restore public confidence. The new board includes experienced professionals such as Dr. Haruna Mustapha as Chairman and Mr. Jacob Erhabor as MD/CEO and is tasked with stabilizing the company and addressing customer concerns, particularly those of annuitants.
NAICOM’s action was welcomed by minority shareholders, who see it as a necessary step to preserve African Alliance’s future. The regulator emphasized that part of the interim board’s mandate is to open the company’s annuity portfolio for acquisition, potentially allowing interested firms to support African Alliance in meeting its asset-liability matching obligations. This restructuring effort seeks to improve the financial health of the insurance firm without compromising policyholders’ investments.
Shareholder groups, including the Independent Shareholders Association of Nigeria, endorsed NAICOM’s decision, praising the proactive measures to prevent a collapse similar to the recent Niger Insurance liquidation. While some shareholders raised concerns about NAICOM’s actions with Niger Insurance, the Commissioner clarified that African Alliance’s situation differs, as the company retains operational potential for rehabilitation rather than liquidation.
