In a statement released in Abuja on Wednesday, NAICOM explained that this action was taken after a thorough assessment of the company's financial health, governance, and operational practices.
The insurance regulator indicated that the review uncovered serious doubts about the company's capacity to operate safely and effectively.
NAICOM noted that the company's situation had created considerable uncertainty regarding the settlement of claims and payments to annuitants.
An interim management board has been appointed to oversee the company's operations.
Dr. Haruna Mustapha has been designated as the Chairman, with Mr. Jacob Erhabor serving as the Managing Director, and Mr. Wasiu Amao as the Executive Director of Technical Operations. Additionally, Ms. Oremeyi Longe will act as the Executive Director of Finance, while Mr. Anthony Achebe and Halimatu Khabeeb will serve as Non-Executive Directors.
The Commission stated that the interim management board is tasked with managing the company's affairs, ensuring adherence to regulatory standards, and implementing essential reforms.
NAICOM also emphasized its commitment to collaborating with all stakeholders, including annuitants, policyholders, employees, and investors, to minimize disruptions and maintain continuity.
To provide a comprehensive explanation for the decision to dismiss the board and management of the esteemed insurance companies, the insurance regulator stated:
“The objective of this takeover is to protect the interests of African Alliance Insurance Plc’s annuitants, policyholders, other stakeholders, and the broader insurance industry, while ensuring the company’s return to stability and compliance.
“The Commission is committed to maintaining the stability and integrity of Nigerian insurance industry.
”Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders, and public interest.”
NAICOM was founded in 1997 under the National Insurance Commission Act 1997, tasked with overseeing the effective management, supervision, regulation, and control of the insurance sector in Nigeria, as well as safeguarding the interests of policyholders, beneficiaries, and third parties involved in insurance contracts.
The Commission's duties encompass the regulation of the insurance industry, overseeing transactions between insurers and reinsurers, setting and upholding standards for the Nigerian insurance landscape, regulating insurance premium rates and commissions, developing protective measures for government assets, and providing advisory services to the government on insurance-related issues.
NAICOM aims to foster a secure and stable insurance industry that can compete on a global scale while making significant contributions to Nigeria's economic development.