Only one insurance firm filed account on time - NSE

Only one insurance company filed its audited financials on time this year out of the eight firms that have submitted their audited financials, The Nigeria Stock Exchange (NSE) has said.

The Exchange disclosed Thursday, during an interactive session with the National Insurance Commission (NAICOM) and shareholders of quoted insurance companies held in Lagos.

NSE said in 2012, 90 per cent of insurance companies gave structured disclosure of their companies, adding that with the emergence of International Financial Reporting standard (IFRS), 28 per cent of insurance companies have given full structure disclosure of their companies.

Speaking on behalf of the exchange, Head / Legal and Regulation Division. Tinuade Awe, said in 2012 93 per cent of insurance companies where default filers while in 2013 90 per cent were default filers.

The NSE boss noted that with the issue of first time adoption of IFRS off the table, it was expected that insurance companies will face lesser challenges in the preparation and submission of their accounts as at when due, that has not been borne so far.

She identified negative distinction of usually having a majority of its members filing in default, even before IFRS adoption, discharge of continuous disclosure obligations is very discouraging, noticeable knowledge and skill gap in the industry, lack of sufficiently deep actuarial know how in the country to conduct actuary valuation aspects of the financial statements, limited shareholder engagement and tax regime is not encouraging as some of the issues affecting the Industry

On the way forward, she urge insurance companies to be mindful of filing calendars especially that of the NSE which is more stringent than other regulators and plan their financial reporting process with the filing dates in mind.

She also called for the need for insurance companies may want to consider changing their accounting year end from December 31 to March 31 and beyond so as not to compete with banks for auditor attention

She also urged NAICOM to expedite action in reviewing the accounts of listed insurance companies to enable them to comply with the regulatory deadlines, while urging the

NIA as the umbrella body of the industry to organize its members and always make representations to the appropriate quarters when issues concerning the industry are being discussed, or when policies affecting the industry are being formulated.

She was opinion that the insurance industry plays a key role in the economy the same way the capital market does, adding that highlighted issues of the industry notwithstanding, the NSE cannot bend its post-listing rules to the insurance companies, as it ensures a zero tolerance.

She however called on operators and shareholders to ensure that companies listed on the stock exchange play by the rules of the business, adding that the exchange will not stop penalizing any company that fail to meet up with the regulator standard of the capital market.