NAICOM Sanctions Dismissed Directors of African Alliance Insurance

The National Insurance Commission (NAICOM) has ruled out the possibility of reappointing the sacked directors of African Alliance Insurance (AAI) to the board of the company or any other board within the insurance industry.

This was disclosed by the Commissioner for Insurance, Olusegun Omosehin, during a question-and-answer session at the annual seminar for insurance journalists in Abeokuta, Ogun State.

NAICOM had dissolved the board and management of African Alliance Insurance in October 2024, replacing them with an interim team mandated to safeguard the interests of policyholders, particularly annuitants.

Speaking on the state of the company nearly a year into the interim management, Omosehin stressed that individuals responsible for the firm’s insolvency would no longer have the opportunity to serve on its board or any other within the sector. He said:

“The entity used to be solvent, and some people ran it down. When we are handing over that entity, every individual who had been on the board and was responsible for the insolvency will never be appointed on that board or on any other board for that matter. Those are clear guidelines. However, the owners of the business will remain the owners.”

The NAICOM boss further explained that steps were being taken to dispose of some assets to raise funds for meeting obligations. According to him, once outstanding claims are settled and portfolios transferred to capable entities, the company will be handed back to its owners, provided they meet capital requirements. Otherwise, its licence could be withdrawn.

Omosehin emphasized that the regulator would no longer condone situations where policyholders suffer due to mismanagement. He noted that while shareholders often contribute minimal capital, the bulk of funds belong to policyholders and must be protected.

On the issue of AAI taking on new business, the Deputy Commissioner (Technical), Dr. Usman Jankara, said the Commission had adopted a cautious approach. He explained that the company should ordinarily not be allowed to underwrite fresh business while outstanding obligations remain unsettled. However, NAICOM introduced a “hybrid model” that permits limited new business under strict controls to avoid further liabilities.

The previous AAI board and management were removed after widespread complaints from annuitants over unpaid claims. Since then, the interim management board (IMB), chaired by Dr. Haruna Mustapha with Mr. Jacob Erhabor as Managing Director/CEO, has cleared outstanding obligations. Other IMB members include Mr. Wasiu Amao (Executive Director, Technical), Ms. Oremeyi Longe (Executive Director, Finance), Mr. Anthony Achebe (Non-Executive Director), and Ms. Halimatu Khabeeb (Non-Executive Director).