NAICOM Hands Over African Alliance Insurance to New Board, Management team

Ebere Nwoji

The National Insurance Commission (NAICOM), has handed over the operations of African Alliance Insurance plc to a new Board of Directors and a new management team.

The new board according to NAICOM is chaired by Rear Admiral Anthony Odogba Isa while the management team is led by Mr. Abayomi Olakunle Ogunkeye as the Managing Director.
The new board was nominated by the company’s shareholders, following the successful conclusion of a regulatory intervention commenced by NAICOM in the company 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.
NAICOM had in October 2024, intervened in African Alliance Insurance after it 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.
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.

According to him, 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.

Omosehin observed that if the IPPF had been operational prior to 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.
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 emphasised 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 as well as reinforce transparency and accountability.

In his remarks, Chairman of the outgoing Interim Management Board, Dr. Haruna Mustapha, 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.
He said 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, enabled 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.

He further said the board 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.

He further said 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 Mustapha, the board also 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.
He further said it 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.
According to the former African Alliance Chairman, the interim board also 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 emphasised that while the handover reflected the success of the stabilisation programme, African Alliance Insurance would remain under regulatory oversight as solvency levels, recapitalisation progress, and compliance with prudential standards continue to be closely monitored.