NAICOM hands over African Alliance Insurance to new board after 18-month turnaround
The National Insurance Commission (NAICOM) has formally handed over the management of African Alliance Insurance Plc to a newly constituted Board of Directors nominated by the company’s shareholders, marking the end of an 18-month regulatory intervention that rescued the insurer from a severe financial and operational crisis.
The National Insurance Commission (NAICOM) has formally handed over the management of African Alliance Insurance Plc to a newly constituted Board of Directors nominated by the company’s shareholders, marking the end of an 18-month regulatory intervention that rescued the insurer from a severe financial and operational crisis.
The transition signals a major milestone in the company’s recovery journey, following efforts by the regulator to restore financial stability, protect policyholders and annuitants, and reposition the insurer for sustainable growth.
Under the new leadership, Admiral Anthony Odogba Isa has been appointed chairman of the Board, while Abayomi Olakunle Ogunkeye assumes office as managing director.
Speaking during the handover ceremony, Olusegun Ayo Omosehin, commissioner for Insurance/ CEO of NAICOM said the successful turnaround of African Alliance Insurance demonstrates the effectiveness of proactive regulatory intervention and the strengthening of Nigeria’s insurance regulatory framework.
He highlighted the significance of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, describing it as a transformative legislation that enhances regulatory oversight, boosts public confidence, and supports deeper insurance penetration across the country.
A key innovation under the Act is the establishment of the Insurance Policyholders Protection Fund (IPPF), a landmark safety mechanism designed to provide financial relief to policyholders in cases of insurer distress, insolvency, or liquidation.
According to Omosehin, the fund represents a major advancement in consumer protection and aligns Nigeria’s insurance regulatory framework with global best practices.
He noted that if the IPPF had been operational before African Alliance Insurance encountered its challenges, it would have helped cushion the impact on policyholders by facilitating the prompt settlement of genuine claims and annuity obligations, thereby reducing uncertainty and preserving confidence in the company.
The Commissioner charged the new Board to work closely with shareholders while maintaining the highest standards of corporate governance, regulatory compliance, and operational transparency.
He stressed the need to sustain policyholder confidence through prompt claims settlement, sound solvency management, and prudent business practices.
Omosehin directed the Board to focus on Strengthening corporate governance structures; Restructuring business portfolios; Updating and reconciling policyholder records; and; and Enhancing transparency and accountability across operations.
In his remarks, Haruna Mustapha, chairman of the outgoing Interim Management Board expressed appreciation to NAICOM for its guidance and support throughout the intervention period.
He said the new Board is well positioned to build on the progress already achieved and sustain a culture of regulatory compliance, sound risk management, and strong corporate governance.
During the 18th months intervention period , NAICOM-appointed Interim Management Board recorded several significant achievements aimed at stabilising the insurer and restoring stakeholder confidence.
The Board secured trapped dividend funds and other inflows, enabling the settlement of a substantial backlog of annuity arrears at one point outstanding for up to 15 months, as well as numerous legacy claims. This provided critical relief to annuitants and policyholders.
It successfully executed the competitive sale of 49 per cent of the company’s stake in an investment, securing a significantly improved valuation and unlocking funds to meet urgent liabilities and operational requirements.
The Board also facilitated the transfer of the admitted annuity portfolio to a capable underwriting institution through a transparent process, ensuring uninterrupted payments to beneficiaries while reducing liquidity pressures on the company.
A comprehensive forensic and actuarial audit covering recent financial periods was completed, with findings submitted to NAICOM to strengthen transparency and support governance and risk management reforms.
The Board concluded outstanding audits, addressed regulatory breaches, settled selected legacy liabilities, resolved legal disputes affecting dividend income, and advanced preparations for compliance with IFRS 17 reporting standards.
Critical operational reforms were implemented, including the remediation of ICT vulnerabilities and the maintenance of essential business functions, helping preserve enterprise value and prepare the company for a relaunch.
NAICOM emphasized that although the handover marks the successful completion of the stabilisation programme, African Alliance Insurance will remain under close regulatory supervision.
The Commission said it will continue to monitor the company’s solvency position, recapitalisation efforts, and compliance with prudential requirements to ensure sustained recovery and long-term stability.
NAICOM intervened in African Alliance Insurance Plc in October 2024 after the company became overwhelmed by severe liquidity challenges, a backlog of unsettled claims, particularly annuity obligations, regulatory breaches, and reputational issues that threatened its survival and eroded policyholder confidence.
To address the situation, the Commission appointed an Interim Management Board and management team with a mandate to stabilise operations, unlock liquidity, settle outstanding liabilities, conduct forensic and actuarial reviews, and restore confidence among policyholders, shareholders, and other stakeholders.
The successful handover to a shareholder-appointed Board marks the culmination of those efforts and signals a new chapter for one of Nigeria’s oldest life insurance companies.
