Crisis is brewing between the board of Standard Alliance Insurance Plc and the National Insurance Commission (NAICOM) over the withdrawal of the company’s Certificate of Registration as an insurer.

The board and shareholders have gone to court to challenge the commission over the withdrawal of the company’s certificate of operation at a time a standby investor had shown readiness to recapitalise it.

Standard Alliance alleged that NAICOM was more interested in liquidation instead of recapitalisation.

In a letter, dated July 8, 2023 and addressed to the Minister of Finance, Budget and Planning, the board of the insurance company had appealed NAICOM’s intent to cancel the registration, stating that the move was unwarranted and untimely.

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Copies of the letter were sent to the Commissioner for National Insurance and the Chief of Staff to the President and Commander-in-Chief.

The board chairman, Johnson Chukwu, explained that a reputable group of investors, Endura Investment Global Limited, had planned to invest $8,000,000 in the company in the first instance, as part of efforts to meet NAICOM’s recapitalisation requirement.

He wondered why the commission applied the hammer at a time Standard Alliance was set to overcome its recapitalisation and operational challenges.

The chairman regretted that the company had been impacted negatively by a shortfall in capital due to the harsh operating environment and COVID-19 pandemic.

Chukwu said the board had sent an appeal to the minister to protect the interest of policy holders and pensioners who stand to lose their benefits.