Account approval of 14 insurance firms withheld for late submission

Matthew Otoijagha

The National Insurance Commission (NAICOM) has approved the 2017 accounts of 18 insurance companies, leaving out about 14 others that were among the 32 firms that have so far submitted in line with the International Financial Reporting Standards (IFRS).

NAICOM said that two companies’ accounts are still being reviewed, while three others were queried, while four others are under analyst review and two others are under supervision review.

The commission’s director of corporate communications, ‘Salami ‘Rasaaq disclosed that some companies under supervision review are: Old Mutual Life and Old Mutual General Insurance while KBL Insurance is under review and Zenith Life and general are queried.

The other 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, 2018 deadline for submission of their 2017 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.

It would be recalled that the National Insurance Commission (NAICOM) had queried the 2017 financial accounts submitted by Zenith Life Assurance Company Limited and those of Zenith General Insurance Limited and Equity Assurance Plc. for not meeting the International Financial Reporting Standard (IFRS).

The insurance industry regulator, in a report, entitled: Status of 2017 Statements of Insurance Companies as at April 2018, said the accounts of AIICO Insurance Plc.; Leadway Assurance Limited; Consolidated Hallmark Insurance Plc, FBNInsurance Limited and 14 others have been approved.

It said the accounts of KBL Insurance Limited; Linkage Assurance Plc; Mutual Benefits Assurance and Mutual Benefits Life Assurance were under review, while those of Old Mutual Nigeria and Old Mutual Nigeria Life were under supervisory review.
NAICOM stated that the accounts of Great Nigeria Insurance; Royal Exchange General; Royal Exchange Prudential and Niger Insurance Plc were under analyst review, while response to query made by Sovereign Trust Insurance Plc is being reviewed.

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