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Published On: Mon, Jul 10th, 2017

NAICOM approves 39 financial reports

The National Insurance Commission (NAICOM) says it has approved 39 out of 49 insurance companies’ 2016 financial reports.
Head of Corporate Affairs, Rasaaq Salami, in a statement on Thursday noted that reports of two companies – Nigeria Reinsurance Corporation and KBL Insurance Limited – were queried, while eight were undergoing review.
Reports under review are those of Guinea Insurance, African Alliance Insurance, Nigeria Agriculture Insurance Cooperation, Equity Assurance, Capital Express Insurance, Universal Insurance, Saham Unitrust Insurance and UNIC Insurance Plc.
Companies with approved reports are FBN Insurance, Wapic Life, Ensure Insurance, Continental Reinsurance, Zenith General Insurance, Zenith Life Assurance and Consolidated Hallmark, Custodian and Allied and Custodian Life Insurance.
Others are Law Union and Rock, Wapic General, AIICO Insurance, AXA Mansard, Prestige Assurance, Nem Insurance Plc, Regency Insurance Plc, Lasaco Assurance, UnityKapital Assurance, Cornerstone Insurance, Fin Insurance Plc, Linkage Assurance, Sterling Assurance, ARM Life.
The list includes Royal Exchange General, Leadway Assurance Plc, Old Mutual Life Insurance, Staco Assurance, Royal Prudential Life and Mutual Benefit Life assurance Plc companies, Sovereign Trust Insurance, NSIA Insurance, Standard Alliance Life Assurance, Anchor and Standard Alliance General Insurance.
NAICOM, the apex body that regulates and supervises the Nigerian insurance sector, requires insurance firms to submit their financial statements on or before March 31.
The Insurance Act imposes a daily fine of N5,000 on firms that fail to meet the March 31 deadline for the submission of their accounts.
NAICOM had early this year warned that insurance firms, whose financial accounts were yet to be submitted before March 31, 2017, would be barred from engaging in further business activities.
The Commission affirmed that it would take action against officials responsible for financial reporting, as well as publish the compliance status of insurance firms on its website for public guidance.
NAICOM maintained that the decision to impose sanctions on such companies became necessary, as their default deprives the Commission, policyholders, insurance intermediaries, analysts and other stakeholders of the relevant information about their performance and financial conditions.
“The Commission is poised to implement relevant measures to discourage companies from filing late returns and sanction errant ones appropriately. Amongst others, this will include a detailed review of their accounting and financial reporting systems, restriction of certain activities until relevant returns are filed, action against officials accountable for financial reporting as well as publicising the compliance status of insurance institutions on our website for public guidance,” it said.
NAICOM also advised boards of companies to take interest in the timely filing of returns, which, incidentally, contain information they need to effectively perform their oversight function, adding that the non-rendition of returns is an indication of the failure of the Board.
It noted that to facilitate the timely rendition of returns, it will carry out a review of the current returns requirements and streamline them for more efficiency in preparation and submission.
It added that the transition to electronic submission will commence this year, and asked companies to send in their suggestions on areas for improvement not as soon as possible.
The Head, Corporate Affair and Human Resource Manager, Nigerian Insurers Association, the umbrella body of Insurance companies in Nigeria, Iyasere Davis, said that it is the duty of the NAICOM to exercise authority over the insurance operators to do what is necessary at the time they should.

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