NAICOM Revokes Standard Alliance, Niger Insurance’s Operating Licences

•Appoints receivers/liquidators to wind down firms

James Emejo

The National Insurance Commission (NAICOM), yesterday wielded the big stick by announcing the cancellation of the operating licences of two insurance companies – Standard Alliance Insurance Plc and Niger Insurance Plc.

The insurance regulator, in a statement issued by its Head, Corporate Communications and Market Development, Mr. Rasaaq Salami, said the revocation took effect from June 21, 2022.

Following the development, the Commission further disclosed that it had appointed Sanya, Ogunkuade Esq as the Receiver/Liquidator for Niger Insurance and, Kehinde Aina Esq as the Receiver/Liquidator for Standard Alliance Insurance to effectively commence the process of winding down both entities.

NAICOM also advised all stakeholders to forward their inquiries to the respective Receiver/Liquidator for each company for their necessary action.

The Commission, nevertheless, assured all stakeholders of the safety and protection of their interests.

Although no immediate reason was given by the regulator for descending on both insurance firms, THISDAY however learnt that NAICOM had written to Niger Insurance on March 31, 2022, allowing the company a 30-day period to convince the Commission and the Ministry of Finance that it could resolve its operational challenges.

The management had also failed to salvage the company’s fortunes which further nosedived in 2021, after previously recording a N2.09 billion loss in 2020, when the COVID-19 pandemic ravaged the industry.

The company’s financial performance also worsened in 2021 with a deficit of N2.63 billion.

In addition, its gross premium recorded in 2021 also dwindled by half to N515.8 million, which was significantly below the N1.03 billion reported during the corresponding period of 2020.

Its weak financials reportedly prevented it from paying insurance claims which had were due to clients.