Alpha Assurances Loses Operating Licence

The Regional Insurance Control Commission took the decision in its 71st ordinary session. Alpha Assurances S.A. that ran into management crisis, obliging the regulatory organ to put in place a provisional administration

and a new financing plan to salvage it from drowning has finally lost all its operating licence. Meeting in Dakar, Senegal, on March 25-30, 2013 in its 71st ordinary session, the Regional Insurance Control Commission (CRCA) of the Central insurance supervisory authority in Sub-Saharan French speaking African countries (CIMA) arrived at the final decision after a series of considerations.

According to a release withdrawing the license, CRCA observed that on December 31, 2008 the financing needs of the company were estimated at FCFA 1.269 billion and that successive financing plans did not yield any fruit. Rather, during another control mission on December 31, 2010, the financial situation of the company further sank, indicating a need of FCFA 3.575 billion. Even the financial plans put in place by the provisional administration, the release further indicated, did not solve the worrying situation.

With these problems, the insurance company was unable to settle its customers; victims of catastrophes, pushing the arbitration commission of the Association of Cameroon's Insurance Companies (ASAC) to suspend the Alpha Assurances S.A. CRCA noted that even the last financing plan jointly put in place by the provisional administration and the Chairman of the Board of Directors fell below expectation.

After auditing the provisional administrator and the Chairman of the Board of Directors in the presence of a representative of the Minister of Finance, CRCA, the release specified, decided to withdraw the operating license from Alpha Assurances S.A.