L-R: Mr. Jacob Irabor, Interim Managing Director; Mr. Ekerete Ola Gam-Ikon, Deputy Commissioner, Finance and Administration, National Insurance Commission (NAICOM); Mr. Cyril Ajagu, Representative of the Shareholders; Rear Admiral Anthony Odogba Isa, New Board Chairman, African Alliance Insurance Plc; Dr. Haruna Mustapha, Outgoing Chairman, Interim Management Board,African Alliance Insurance Plc; Mr. Olusegun Ayo Omosehin, Commissioner for Insurance, National Insurance Commission (NAICOM); Dr. Usman Jankara; and Mr. Abayomi Olakunle Olukeye, New Managing Director, African Alliance Insurance Plc.
The National Insurance Commission (NAICOM) has formally transferred operational control of African Alliance Insurance Plc to a newly constituted Board nominated by the company’s shareholders, following the successful conclusion of a regulatory intervention that commenced in October 2024.
The handover marks a significant milestone in restoring the company’s financial stability, safeguarding the interests of policyholders and annuitants, and repositioning the organisation for sustainable growth.
Background to the Regulatory Intervention
In October 2024, NAICOM intervened in African Alliance Insurance Plc after the company faced severe liquidity challenges, a backlog of unsettled claims particularly annuity obligations regulatory breaches, and reputational damage that threatened its continued existence and undermined policyholder confidence.
To address these challenges, NAICOM appointed an Interim Management Board (IMB) and an interim management team, with a clear mandate to stabilise the company, unlock liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and restore stakeholder confidence.
Regulatory Reforms and Policyholder Protection.
Speaking during the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, highlighted the transformative impact of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025.
He noted that the legislation strengthens regulatory oversight, enhances public confidence, and supports deeper insurance penetration in Nigeria.
A major milestone under the Act is the establishment of the Insurance Policyholders Protection Fund (IPPF) a landmark mechanism designed to provide financial relief to policyholders in the event of insurer distress, insolvency, or liquidation. The Fund represents a significant advance in consumer protection and aligns Nigeria’s regulatory framework with global best practices.
Mr. Omosehin observed that if the IPPF had been operational prior to the challenges that affected African Alliance Insurance Plc, it could have played a critical role in cushioning the impact on policyholders by facilitating the timely settlement of legitimate claims and annuity obligations. This, he noted, would have reduced uncertainty and strengthened confidence during the transition period.
Expectations for the New Board
The Commissioner charged the newly constituted Board OF Directors to work collaboratively with shareholders while upholding the highest standards of corporate governance, regulatory compliance, and operational transparency. He emphasized the importance of sustaining policyholder confidence through prompt claims settlement, sound solvency management, and prudent business practices.
He further directed the Board to:
- Strengthen corporate governance structures
- Restructure portfolios
- Update and reconcile policyholder records
- Reinforce transparency and accountability
Remarks by the Outgoing Interim Management
In his remarks, Dr. Haruna Mustapha, Chairman of the outgoing Interim Management Board, expressed appreciation to NAICOM for its guidance and support throughout the intervention period.
He assured stakeholders that the new Board would build on the progress achieved and sustain a culture of regulatory compliance, sound risk management, and strong corporate governance.
Some of Key Achievements of the Interim Management Board
During its tenure, the NAICOM-appointed Interim Management Board recorded significant milestones, including:
- Liquidity Restoration and Settlement of Arrears:
Secured trapped dividend funds and other inflows, enabling the settlement of a substantial backlog of annuity arrears at one point up to 15 months as well as numerous legacy claims, thereby protecting vulnerable annuitants and policyholders.
- Strategic Asset Realisations:
Successfully executed the competitive sale of 49% of the company’s stake in an investment, achieving a material improvement over prior offers and unlocking funds to meet pressing liabilities and operational needs.
- Transfer of Annuity Portfolio:
Facilitated the transfer of the admitted annuity portfolio to a capable underwriting institution through a transparent process, ensuring continuity of payments to beneficiaries and reducing liquidity pressure on the company.
- Forensic and Actuarial Reviews:
Completed a comprehensive forensic and actuarial audit covering recent financial periods, with findings submitted to NAICOM to enhance transparency and guide governance and risk reforms.
- Corporate Housekeeping and Compliance:
Concluded outstanding audits, addressed regulatory breaches, settled selected legacy liabilities, resolved legal impediments including disputes affecting dividend income and advanced preparation for IFRS 17 compliance.
- Operational Stabilisation:
Implemented critical operational measures, including remediation of ICT vulnerabilities, and maintenance of essential business functions, thereby preserving enterprise value and preparing the company for relaunch.
Regulatory Oversight and Handover Conditions
NAICOM emphasised that while the handover reflects the success of the stabilization programme, African Alliance Insurance Plc will remain under regulatory oversight as solvency levels, recapitalisation progress, and compliance with prudential standards continue to be closely monitored.
The company now have a new Managing Director in the person of Mr. Abayomi Olakunle Ogunkeye and a new Chairman in the person of Rear Admiral Anthony Odogba Isa.
