NAICOM to liquidate Investment and Allied Assurance to Spring Life
The National Insurance Commission (NAICOM) is set to liquidate two troubled insurance companies – Investment and Allied Assurance Plc and Spring Life Assurance, the Acting Commissioner for Insurance, Sunday Thomas, has said.
He made this known at the NAICOM Seminar for reporters in Kano.
He said the Commission has appointed Odion Unuakhe as the receiver/liquidator to wind up Investment and Allied Assurance.
NAICOM Secretary/Legal Adviser, Dr. Talmiz Usman, further disclosed that the commission had, on August 6, 2018, cancelled the licence of Investment and Allied Assurance.
In February 2011, NAICOM assumed control of the firm to stem the tide of fraudulent practices, leading to corporate governance failure and lapses.
NAICOM removed the company’s executive management team and replaced it with an interim management.
Shortly after, it engaged a firm of chartered accountants to probe the company’s affairs and the accounts.
NAICOM’s audit uncovered about N14.7 billion realised from the private placement made by the company between 2006 and 2008 that was not accounted for.
Usman said: “We appointed two receiver managers in 2018. One is Investment and Allied Assurance. It has been troubled for quite some time.The trouble started during the last recapitalisation of insurance companies in 2007.
“The company did a Private Placement Offer (IPO). At the end, we didn’t know where the money raised from the IPO was put into. We found that some billions were diverted.
“The second company whose license has been cancelled and under receiver/liquidator is Spring Life. It is a life company and the law says you don’t liquidate the company immediately.
First of all, you have to transfer the life portfolio of the company and the second thing is to transfer the asset to another life insurance company. So we are the stage where Investment and Allied and Spring Life are under receivership”, he added.