The deadline given to the listed insurance firms to submit their 2014 account to NSE was March end, which has elapsed and the erring firms are currently paying monetary fines to the Exchange.
However, NAICOM has issued June 30, 2015 as the deadline for all underwriting firms operating in the country to submit their 2014 accounts to it, after which erring firms will be requested to pay N5 ,000 daily, starting from July 1, until they are able to submit it to the commission.
The affected underwriting firms are: African Alliance Assurance, Alliance & General Insurance, Alliance & General Life Assurance Plc, Anchor Insurance, Capital Express, Fin Insurance Company Ltd , Goldlink Insurance, Great Nigeria Insurance, Guinea Nigeria Insurance, Industrial & General Insurance Plc, International Energy Insurance Plc and Investment & Allied Assurance Company Ltd.
Others are; Nigerian Agricultural Insurance Corporation(NAIC), Spring Life Assurance Plc, Standard Alliance Insurance Plc, Unic Insurance Plc, Universal Insurance Plc and NICON Insurance.
However, Newswatch Times learnt at the weekend that some of aforementioned insurance firms are putting finishing touches to their accounts to enable them submit to NAICOM in the next couple of days in a bid to meet the submission deadline. However, some of those firms that are yet to submit theirs, especially the firms under NAICOM’s management, are still far away in the preparation of their accounts for regulatory approval.
Shareholders had, in the past, criticised insurance companies for paying fines from the little profits they made, thereby, depriving them dividend or bonus. They had charged the management of underwriting firms to do all within their power to always meet regulatory requirements and avoid paying unnecessary monetary sanctions, which, according to them, is not good for the image of operators in insurance industry. For instance, only one of the insurers that have done their Annual General Meeting(AGM) is in a better position to declare dividend to its shareholders, a development the insurance shareholders are unhappy with.
If the 18 firms failed to meet the deadline and had to pay huge monetary fines as a result, there are strong indications that the board will have to slug it out with shareholders at their AGM, as shareholders, had last year, warned insurance companies to avoid such situation in the current year in a bid to declare dividend, even if it is small.
Meanwhile, 40 underwriting firms in the country have so far submitted their 2014 financial statements to NAICOM, as the deadline given to them to do so, draws nearer. Of this number, 23 companies have had their accounts approved by the commission as at June 2, 2015. They include: Wapic Life Assurance Ltd, Wapic Insurance Plc, Custodian & Allied Ins. Ltd, Custodian Life Assurance Ltd, Law Union & Rock Insurance Company Plc, Mansard Ins Plc, FBN Insurance Ltd, Oasis Insurance Plc, Consolidated Hallmark Insurance, UBA Metropolitan Life Ins. Company, Zenith Life Assurance Company Ltd, Zenith General Insurance Company Limited, Royal Exchange Prudential Life Plc, Royal Exchange General Insurance Ltd, AIICO Insurance Plc, Cornerstone Insurance Plc and Prestige Assurance Plc.
Others are: Continental Reinsurance, NSIA Insurance, NEM Insurance, Leadway Assurance Plc, Equity Assurance Plc and Unity Kapital Assurance Plc. Moreover, the accounts of Mutual Benefits Assurance Plc, Mutual Benefits Life Assurance Plc, Regency Alliance Insurance had earlier been queried and their responses to the query are currently under review by the commission.
On the other hand, Lasaco Assurance Plc, ARM Life Insurance, Niger Insurance, Nigerian Reinsurance Corporation, Union Assurance Plc, Staco Insurance Plc, KBL Insurance Limited, Sovereign Trust Insurance Plc, Linkage Assurance Plc, Old Mutual Life Assurance and Unitrust Insurance Plc have had their accounts queried by NAICOM and the commission is awaiting response from them.
However, there is Review in Process for the accounts of Old Mutual Nigeria Insurance, Sterling Assurance Plc and Standard Alliance Life Assurance Plc. Last year, some accounts of underwriting firms were delayed before they were finally approved by the commission. Consequent upon this, some insurers paid monetary fine running into millions of naira to the Nigerian Stock Exchange (NSE) and NAICOM. So far, Mansard Insurance Plc and Wapic Insurance Plc have done their AGM, where they declared their financial statement to the shareholders, although, none of them declared dividend to their shareholders. In the same vein, NAICOM has recently admonished insurance companies in the country to submit their accounts as and when due, in a bid to avoid sanctions.
Commissioner for Insurance, Mr. Fola Daniel, said the early submission of financial accounts, plays an important role in the growth of the industry. The Insurance Act 2003, he said, provides for the submission of annual accounts not later than June 30, while the requirement by the Nigerian Stock Exchange (NSE) for listed companies is March 31.
He added that the commission had in the past continued to plead for the sector with other regulatory forbearance. He frowned at the late submission of annual account by companies, saying this shows that either a company was lacking integrity issue or withholding some information to the public. Going forward, he called on insurance companies to comply with all requisite regulatory requirements without plea subsidies from NAICOM.
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