The National Insurance Commission has sacked the Board and Management of African Alliance Insurance Plc due to the company’s long-lasting insolvency and failure to fulfill financial commitments to annuities and policyholders.
NAICOM, Nigeria’s insurance sector primary regulator, officially announced on Wednesday that it has assumed control of the company’s operations with the aim of reinstating stability.
The choice was made after a thorough examination of the insurer’s financial stability, management, and operational procedures, which caused worries about its ability to remain in operation.
The commission stated that uncertainty about the company’s capability to settle claims and pay annuitants led to the intervention.
In order to address the situation, NAICOM has established an Interim Management Board consisting of Dr. Haruna Mustapha as the Chairman, while Jacob Erhabor is to serve as the Managing Director and CEO.
The new management team has been given the responsibility of stabilizing operations, ensuring compliance with regulatory guidelines, and implementing important changes to improve the company’s financial well-being.
NAICOM reaffirmed its dedication to collaborating closely with all relevant parties such as policyholders, annuitants, employees, and investors in order to reduce disruptions and uphold the continuous operation of businesses.
The Commission said the acquisition is to protect the welfare of African Alliance Insurance Plc’s beneficiaries, clients, and other parties involved, and also to maintain the honesty of the insurance industry.
NAICOM also confirmed its commitment to ensuring stability in the insurance sector of Nigeria, emphasizing that its efforts show a strong determination to tackle issues in the industry and safeguard the public’s interests.
