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From Adanna Nnamani (Abuja) and Henry Uche
The National Insurance Commission (NAICOM) has formally returned the management and control of African Alliance Insurance Plc to a newly constituted Board of Directors nominated by the company’s shareholders.
The move is a successful conclusion of an 18-month regulatory intervention that rescued the insurer from severe financial and operational challenges. The handover, which took place during a formal ceremony attended by industry stakeholders, signals a new chapter for the company after a period of intensive restructuring and stabilization efforts undertaken under the supervision of the insurance regulator.
NAICOM had stepped into the affairs of African Alliance Insurance Plc in October 2024 following mounting concerns over the company’s financial condition, persistent liquidity challenges, a growing backlog of unsettled claims and annuity obligations, as well as regulatory breaches that threatened its continued existence and eroded public confidence in the insurer.
At the height of the crisis, policyholders and annuitants faced uncertainty over the settlement of legitimate claims, while the company’s reputation suffered significant damage within the insurance industry and among the investing public.
To address the situation, the Commission appointed an Interim Management Board (IMB) and an interim management team with a clear mandate to stabilize the company, restore liquidity, settle outstanding obligations, conduct comprehensive reviews of its operations and finances, and rebuild confidence among policyholders, shareholders and other stakeholders.
Speaking at the handover ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, described the transfer of control to the new board as a major milestone in the company’s recovery journey and a testament to the effectiveness of regulatory intervention when policyholder interests are threatened.
According to him, the intervention was designed not only to restore stability to African Alliance Insurance Plc but also to protect policyholders and preserve confidence in Nigeria’s insurance industry.
He noted that the successful completion of the intervention demonstrates NAICOM’s commitment to safeguarding consumers and ensuring that insurance institutions operate in line with established prudential standards.
Omosehin also used the occasion to highlight the significance of the recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, which he described as a landmark legislation aimed at strengthening regulatory oversight, improving consumer protection and deepening insurance penetration across the country.
He said one of the most important innovations introduced by the new law is the establishment of the Insurance Policyholders Protection Fund (IPPF), a mechanism designed to provide financial support to policyholders in the event of insurer distress, insolvency or liquidation.
According to the Commissioner, the fund represents a major advancement in consumer protection and aligns Nigeria’s insurance regulatory framework with global best practices.
He observed that if the fund had been in existence before the challenges that affected African Alliance Insurance Plc emerged, it could have played a crucial role in cushioning the impact on policyholders and annuitants by facilitating the prompt settlement of valid claims and obligations.
Such a mechanism, he noted, would have reduced uncertainty and helped sustain public confidence throughout the period of transition.
Omosehin charged the newly constituted Board of Directors to build on the progress recorded during the intervention period by embracing sound corporate governance practices, transparency and regulatory compliance.
He urged the directors to work closely with shareholders while prioritizing the interests of policyholders and maintaining prudent business practices capable of sustaining the company’s recovery.
The Commissioner specifically directed the board to strengthen governance structures, restructure business portfolios, update and reconcile policyholder records and reinforce transparency and accountability across all levels of the organisation.
He emphasized that prompt claims settlement, strong solvency management and effective risk controls would be critical to restoring and maintaining confidence in the company.
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In his remarks, Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, expressed appreciation to NAICOM for the confidence reposed in the board and for the support provided throughout the intervention process.
He said the task of restoring the company had been challenging but rewarding, adding that significant progress was achieved in addressing the issues that necessitated the regulatory action.
Mustapha expressed confidence that the new board would consolidate on the gains already recorded and continue to uphold the principles of sound corporate governance, effective risk management and regulatory compliance.
A review of the activities of the Interim Management Board showed that substantial progress was made in stabilizing the insurer’s operations and improving its financial position.
One of the board’s most significant achievements was the restoration of liquidity through the recovery of trapped dividend funds and other inflows. These funds enabled the company to clear a substantial portion of outstanding annuity arrears, which at one point had accumulated for up to 15 months, while also settling numerous legacy claims owed to policyholders.
The board also successfully executed the competitive sale of 49 per cent of the company’s stake in an investment asset. The transaction generated significantly higher value than previous offers and unlocked additional resources needed to meet pressing liabilities and support ongoing operations.
Another major achievement was the transfer of the company’s admitted annuity portfolio to a capable underwriting institution through a transparent and competitive process.
The move ensured continuity of annuity payments to beneficiaries while reducing the liquidity burden on African Alliance Insurance Plc.
The intervention team further carried out comprehensive forensic and actuarial reviews covering recent financial periods. The findings of these reviews were submitted to NAICOM and are expected to guide future governance reforms, risk management improvements and operational restructuring.
The board also completed outstanding audits, addressed several regulatory compliance issues, settled selected legacy liabilities and resolved legal disputes that had previously affected dividend income and other financial inflows.
In addition, significant progress was recorded in preparing the company for compliance with International Financial Reporting Standard (IFRS) 17, the global accounting framework for insurance contracts.
Operationally, the Interim Management Board implemented several measures aimed at preserving the company’s value and ensuring business continuity. These included strengthening internal controls, addressing information and communications technology vulnerabilities and maintaining essential business functions during the recovery process.
Despite the successful handover, NAICOM emphasized that African Alliance Insurance Plc will remain under close regulatory supervision as the company continues its recovery journey.
The Commission stated that it would closely monitor the insurer’s solvency position, recapitalisation efforts and compliance with prudential standards to ensure that the progress achieved during the intervention is sustained.
As part of the transition, the company now has a new Managing Director, Mr. Abayomi Olakunle Ogunkeye, while Rear Admiral Anthony Odogba Isa assumes office as Chairman of the Board.
Industry stakeholders have described the successful turnaround of African Alliance Insurance Plc as a significant development for Nigeria’s insurance sector, noting that it underscores the importance of effective regulatory oversight in protecting policyholders, preserving financial stability and strengthening public confidence in the industry.
With the intervention now concluded and a new leadership team in place, attention will shift to the company’s ability to consolidate the gains of the past 18 months, strengthen its balance sheet and rebuild its position within Nigeria’s competitive insurance market.
