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2016 Accounts: NAICOM withholds approval for 10 insurance companies

NSE suspends trading on shares of seven others

By Favour Nnabugwu & Rosemary Onuoha

THE National Insurance Commission (NAICOM) has approved the 2016 accounts of 39 insurance companies, leaving out about 10 others that were among the 49 that have so far submitted in line with the International Financial Reporting Standards (IFRS).

However, Financial Vanguard can report that the approval for Sovereign Trust Insurance Plc may be coming too late as the Nigerian Stock Exchange has suspended trading on its shares along with six others for failure to file relevant accounts with the NSE with effect from July, 5, 2017.

The other suspended companies are African Alliance Insurance Plc; Equity Assurance Plc; Guinea Insurance Plc; Goldlink Insurance Plc; Great Nigeria Insurance Plc; as well as Universal Insurance Company Plc.

In accordance with the NSE’s rules, the suspension of the companies will only be lifted upon the submission of the relevant accounts.

Meanwhile, NAICOM said that six companies’ accounts are still being reviewed while two others were queried.

The accounts already approved are FBN General Insurance; Wapic Life; Ensure Insurance; Continental Reinsurance; Zenith General Insurance; FBNInsurance; Consolidated Hallmark Insurance; AIICO Insurance; Leadway Assurance; Mutual Benefit Assurance, Sovereign Trust Insurance; and Anchor Insurance among others.

The Commission said it is still reviewing the accounts of Nigerian Agricultural Insurance Corporation; Equity Assurance; Capital Express; Universal Insurance Plc; UNIC Insurance Plc and Saham Unitrust Insurance Nigeria Limited while Nigerian Reinsurance Corporation and KBL Insurance were queried.

The nine companies that are yet to submit their accounts will have to pay a daily fine of N5,000 for failing to meet the June 30, 2017 deadline for submission of their 2016 accounts pending when they submit their accounts.

NAICOM regulation requires insurance firms to submit their financial statements on or before June 30th every year, else they would be barred from engaging in further business activities

The Commission maintained that the decision to impose sanctions on defaulting companies became necessary, as their action deprives the Commission, policyholders, insurance intermediaries, analysts and other stakeholders of the relevant information about their performance and financial conditions.


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