Alliance & General Insurance faults NAICOM suspension, says its scrutiny capability is in question
WorldStage Newsonline-- The Alliance and General Insurance Plc, Wednesday denied allegations of any wrong doings leading to the suspension of it operating license by the National Insurance Corporation (NAICOM), insisting that its operations were fully in line with good corporate governance and the interest of its clients and shareholders.
The company in a press statement signed by its Divisional Director, Corporate Planning and Strategy Mr. Dotun Onipede said that it “still wonders how the allegation of insolvency came up given that it had paid out more than N20 million for claims in the last two weeks e.g. CBN Dana Air Crash Victims Group Accident Claim and over N1.20 billion to Nigerian College of Aviation Technology, Zaria and others.”
The statement went further to say that the Financial Reporting Council was not thorough enough in recommending to NAICOM to suspend the management teams of Alliance & General Insurance Limited and Alliance & General Life Assurance Plc from operation and also panelised over N100 million, because they no longer exist and the account in question had been withdrawn by the board.
It noted that: “The two companies do not exist, following satisfactory due diligences, both of them were NAICOM approved for merger into one strong entity. NAICOM duly approved the merger under the new name Alliance & General Insurance Plc. It therefore implies that NAICOM suspended two companies that no longer exist.
“But since the suspended companies were the product of the current company, we are inclined to react in the interest of our shareholders, clients and other stakeholders,” the company said.
The statement noted that unless there is a deliberate intent to bring down Alliance & General Insurance Plc, FRC and NAICOM should not have hastily taken a decision against it based on issues against the two former companies whose merger was well approved by NAICOM and other relevant authorities. Onipede said the company cannot be said to be insolvent because the merger was with intent to strengthen the entity financially and managerially and technically.
“So is NAICOM saying that the company that emerged from it approval of the merger of two others is suddenly insolvent after a month. Moreover the solvency margin of Alliance & General Insurance Company Ltd for 2010 Alliance & General Life Assurance Plc for 2009 and which stood at N6,317,314,326 and N8,068,614,944 respectively and was fully approved by NAICOM and 2010. It follows then, that NAICOM’s scrutiny capability is in question.
His word: "In fact, we paid more than N1.2 billion as claims within the last few months, which is not the mark of an insolvent company.”
“If FRC is not satisfied with our financial report as they claimed, they should point out the areas of inconsistency rather than making sweeping comments just to ensure our crucifixion.
“The 2010 financial report that we submitted followed the pattern of 2009 financial report, yet NAICOM approved that of 2009 accounts in 28 Feb, 2011. This raises some puzzles because this is unusual. How are we sure that this not a ploy to take over the company as has been done in the past by some overzealous officials? “If NAICOM has an issue with us, appropriate processes and procedures should have been taken to compel us to make amends, but nothing like that happened,” A & G Insurance Plc said.
The company therefore urged NAICOM to rethink its decision in the interest of justice and fairness and in the spirit of democracy and good governance which it subscribes to, not forgetting our valued clients, the insuring public and the Insurance Industry as a whole. It added that the company had always employed the best ethical practices as stipulated by NAICOM in carrying out its business, hence it expected NAICOM to duly communicate to it all the alleged violations listed by FRC for it to adequately defend itself before the announcement of the suspension order.
“Our records show that we were not given fair hearing in all of this. As It is, we suspect, a grand ploy to discredit the company and hijack the management as has now been done using guerrilla tactics,” the company noted.
The statement further stated that the action and inaction of NAICOM were clear evidence of malicious intent conspiracy to damage the good reputation of the company.