The National Insurance Commission, NAICOM, and the board of Standard Alliance Insurance Plc are in conflict over the termination of the company’s certificate of registration as an insurer.
The board and shareholders filed a lawsuit against the commission regarding the commission’s decision to revoke the certificate of operation at a time when a standby investor had expressed interest in recapitalizing the company.
The company claimed that NAICOM preferred liquidation to recapitalisation. The board had appealed against NAICOM’s intention to cancel the registration in a letter dated July 8, 2022 to the Minister of Finance, Budget, and National Planning, Zainab Ahmed, claiming that the action is unnecessary and late.
The National Insurance Commissioner and President Muhammadu Buhari both received copies of the letter.
Johnson Chukwu, the board chairman, revealed that Endura Investment Global Ltd., a renowned group of investors, had intended to invest $ 8,000,000 in the business initially as part of attempts to meet NAICOM’s recapitalization criteria.
He questioned why the commission used the hammer just when Standard Alliance was about to overcome its operational and recapitalisation difficulties.
The chairman lamented that the company had been impacted negatively by a shortfall in capital due to the harsh operating environment and adverse impact of the COVID-19 pandemic.
Chukwu explained that the board had sent an appeal to the minister to protect the interest of policyholders and pensioners, who stand to lose their benefits.
According to him, the board was also worried about the entity’s future in order to avert job losses and the loss of entitlements for important stakeholders.
In addition to their extended family, 200 families are supported by the company, which has offices in major cities throughout the six geopolitical zones.
The licence’s withdrawal could cause panic in the insurance industry and give the general public the impression that the sector is unstable.
Chukwu added: “We are disturbed that for the period our appeal was lodged with your office, an appeal that was also copied to NAICOM, and while we were still waiting for your responses, NAICOM did not at any time during this period deem it fit and necessary to invite us and the investors in respect of our appeal.”
