Tuesday 8 October 2013

IFRS: NAICOM cracks nuts, approves 17 firms’ accounts


Chuks Udo Okonta

Aligning the financial accounts of insurance companies with International Financial Reporting Standard (IFRS) has become a herculean nut for the National Insurance Commission (NAICOM) to crack, as only one firm got approval between Monday, September 30 and yesterday Monday, October 7.

According to a release on NAICOM’s website, only Custodian & Allied Insurance Plc account was approved, thereby making the numbers of approved firms 17, while 39 accounts have been submitted so far.

 

Firms already approved include: Mansard Insurance plc; ADIC Insurance Limited; WAPIC Insurance Plc; Consolidated Hallmark Insurance; Oasis Insurance Plc; FBN Life Assurance Limited; Continental Reinsurance Company Plc; AIICO Insurance Plc and Leadway Assurance Company Limited.

Others are; Crusader General Insurance Limited; Crusader Life Insurance Limited; UBA Metropolitan Life Insurance Company; Zenith Insurance Company Limited; Unitrust Insurance Company Limited; Unity Kapital Assurance Plc and Standard Allied Life Assurance.

 The commission said the accounts submitted by Zenith Life Insurance Limited; Sovereign Trust Insurance Plc; Royal Exchange Assurance Plc; Prestige Assurance Plc; FIN Insurance Limited and Equity Assurance Plc are placed under responses.

 

While those of Regency Alliance Company; Sterling Assurance Nigeria Limited; Law Union & Rock Insurance Company Plc; Wapic Life Assurance Limited; Nem Insurance Plc; Crystal Life Insurance; Oceanic (old Mutual); PHB Insurance Plc; Lasaco Assuarnce Plc and Royal Prudential Life Assurance Plc; Cornerstone Insurance Plc; Great Nigeria Insurance were queried and their responses are being awaited.

 

The accounts submitted by Niger Insurance Plc; Lasaco Life Assurance; Nigeria Reinsurance Corporation and Linkage Assurance Plc are being reviewed.  

 

The Commissioner for Insurance Fola Daniel, said transition to IFRS is not an option, but an imperative, and so, there is no two ways about it. He maintained that the commission places great priority on ensuring that operator’s financials beginning from 2012 accounts are credible.

He said the commission had made frantic effort to ensure that operators have seamless transmission to IFRS, adding that the delay presently observed in the approval of some operator’s accounts is because the results do not meet the desired standard.

He said: “As early as January 2011, we called on Chief Executive Officers (CEOs) of all insurance companies, their external auditors to a workshop, and we had two more workshops as a follow-up in the same year and did same last year. And that was why within the financial regulators, NAICOM was given the chairmanship, because we were leading even the bankers in IFRS conversion.

“Unfortunately, we do not regulate the external auditors, all we can do, is to get them understand what IFRS is all about, but they slack. The problem is that many of these accounts were done in a way that is not IFRS compliant. IFRS transition is not an option, but an imperative.  So, there is no two ways about it. I think what is key, to us in NAICOM is that our financials beginning from 2012 accounts, must be credible.

“I do not feel good as Commissioner for Insurance, when a would-be investor from South Africa, looks at our financials, he says it is a joke and throws it away, because it does not have credibility. That is not good for us as an industry. Our industry operates under the principle of utmost good faith, so every paper we wave must be credible.

“What we are trying to do is to ensure that there is 360 degree credibility and that is what we would have. A few of the companies have been approved so far. “       

 

 

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