Two firms yet to submit last year account to NAICOM

Two firms yet to submit last year account to NAICOM

Chuks Udo Okonta

Two   underwriting firms are yet to submit their last year’s financial account to the National Insurance Commission (NAICOM) Inspen has learnt.

 Director Supervision NAICOM Opara Nicholas, who disclosed this in Lagos, but failed to give their names, said most of the last year’s accounts submitted by companies were not properly prepared. He said many of the accounts were queried due to irregularities.

He noted that the commission is committed to cleaning up the reports of companies to enable them meet international standard.

Insurance industry guidelines states that all insurance and re-insurance companies shall submit to the commission three copies each of duly audited financial statements and annual returns in prescribed forms. It noted that in respect of operation of the company for 2011, returns shall be filed on or before 30th June, 2012.

It said: “The following items shall accompany audited annual returns: Copy of management letter and the response of the management to the issues raised therein, certificate of solvency issued by the external auditors in the case of non-life; certificate of solvency issued by the actuary in the case of life, two copies of actuarial valuation report, schedule of unexpired risk for general business presented in the format of form G.3, schedule of outstanding claims at the year end according to age analysis and in the format of form G.2C.

Others are schedule of outstanding premium debt at the year end according to age analysis and in the format of form G.2P, schedule of investments hypothecated according to the funds and supported with relevant proof of existence and ownership, schedule of fixed assets purchased during the year supported with verifiable evidence, personnel returns for the year presented in the format of form G.4, and evidence of payment of filing fees and penalties for late submission, if applicable.

It noted that in rendering annual returns, composite insurers shall adhere strictly to the provision of Section 19 of the Insurance Act 2003 regarding separation of accounts and reserve funds.

The guidelines said late filing of annual returns shall in accordance with section 26(3) of the Insurance Act, 2003 attracts a fine of N5000.00 per day for each day of default, adding that failure to file annual returns as prescribed by Section 26 of the Insurance Act, 2003 constitutes a ground for cancellation of operating licence.

It noted that an insurer shall be deemed to have failed to file its annual returns if the provisions of S.26 of the Insurance Act 2003 are not met 12 months after the end of the financial year, stressing cash flow statements shall be prepared and presented on direct method basis.

It said each company shall at the time of submission of annual returns and audited financial statements pay the following filing fees:-Composite Insurers N200,000, Life or General N100,000 and  Reinsurers N200,000