NAICOM Transfers African Alliance Insurance to New Board and Management Team

Ebere Nwoji

The National Insurance Commission (NAICOM) has transferred the operations of African Alliance Insurance plc to a newly appointed Board of Directors and a fresh management team.

NAICOM announced that the new board will be chaired by Rear Admiral Anthony Odogba Isa, while Mr. Abayomi Olakunle Ogunkeye will serve as Managing Director of the company’s management team.

The board was nominated by the company’s shareholders after NAICOM completed its regulatory intervention, which began in October 2024.

This handover represents a key step in restoring the company’s financial stability, protecting policyholders and annuitants, and positioning the organisation for sustainable growth.

In October 2024, NAICOM intervened in African Alliance Insurance following severe liquidity challenges, a backlog of unsettled claims—particularly annuity obligations—regulatory breaches, and reputational damage that threatened the company’s viability and eroded policyholder confidence. To address these issues, NAICOM appointed an Interim Management Board (IMB) and an interim management team. Their mandate was to stabilise the company, unlock liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and restore stakeholder confidence.

During the handover ceremony, NAICOM Commissioner for Insurance and Chief Executive Officer 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.

Mr. Omosehin identified the establishment of the Insurance Policyholders Protection Fund (IPPF) as a major milestone under NIIRA. The IPPF is a landmark mechanism designed to provide financial relief to policyholders in the event of insurer distress, insolvency, or liquidation. He said the Fund represents a significant advance in consumer protection and aligns Nigeria’s regulatory framework with global best practices.

He observed that if the IPPF had been operational before the challenges that affected African Alliance Insurance, 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.

Mr. Omosehin 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 emphasised the importance of sustaining policyholder confidence through prompt claims settlement, sound solvency management, and prudent business practices. He also directed the board to strengthen corporate governance structures, restructure portfolios, update and reconcile policyholder records, and reinforce transparency and accountability.

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.

Dr. Mustapha highlighted the Interim Management Board’s achievements, including liquidity restoration and settlement of arrears, recovery of trapped dividend funds and other inflows, and settlement of a substantial backlog of annuity arrears—at one point up to 15 months—as well as numerous legacy claims. These actions protected vulnerable annuitants and policyholders.

The board also successfully executed the competitive sale of 49 percent 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.

Additionally, the board 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.

According to Dr. Mustapha, the board 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. The audit also addressed regulatory breaches, settled selected legacy liabilities, resolved legal impediments—including disputes affecting dividend income—and advanced preparation for IFRS 17 compliance.

The former African Alliance Chairman noted that the interim board 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.

NAICOM emphasized that while the handover reflects the success of the stabilisation programme, African Alliance Insurance will remain under regulatory oversight as solvency levels, recapitalisation progress, and compliance with prudential standards continue to be closely monitored.