Financial Account: NAICOM, NSE Fine 10 Insurers N50m For Non- compliance

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Source: Leadership

The National Insurance Commission (NAICOM) said 49 insurance companies has so far submitted their 2015 accounts. Just as investigation shows that, about 10 insurance companies are yet to submit theirs, three days to the end of the year.

The erring firms are already paying monetary fines to the Commission while the public quoted firms among them are equally paying fines to the Nigerian Stock Exchange(NSE), until they are able to submit their accounts.

The affected companies as at 7th of November, 2016 include; Great Nigeria Insurance (GNI Plc), Industrial and General Insurance (IGI) Plc, Goldlink Insurance, Alliance & General Insurance, Alliance & General Life, Investment & Allied Insurance Plc, Spring Life Assurance Plc, Nigeria Agricultural Insurance Corporation(NAIC) and Unitrust Insurance Company Ltd.

The companies had exceeded the June 30th deadline given to underwriters by NAICOM and March 31st deadline issued to listed equities to submit their 2015 accounts. The affected 10 insurance companies paid a cumulative N9 million to NAICOM as monetary fines, paying N5,000 each, for each day after the expiration of the June 30th deadline given to underwriters to submit their 2015 accounts.

On the other hand, four of the erring underwriters are listed on the floor of the Exchange, namely, Great Nigeria Insurance (GNI Plc), Industrial and General Insurance (IGI) Plc, Goldlink Insurance and Investment & Allied Insurance Plc may have equally paid monetary fines to NSE.

However, Great Nigeria Insurance(GNI) as at 23rd of December, 2016, being the last trading day, paid a sum of N10.8 million to the Exchange for default in filling its December 2014 accounts, 1st, 2nd and 3rd quarters of 2015 financial statements. Although, the monetary fines paid by the remaining three listed firms could not be ascertained as at the time of writing this report, insider source said the companies may have paid several millions of Naira to NSE, just like GNI did.

Last year, however, Leadership learnt that some insurers suffered heavy monetary sanctions from NAICOM and NSE for failure to meet 2014 account submission deadline. Consequent upon this, they paid monetary fine running into several millions of naira to the two regulators, even as it impacted negatively on their balance sheet as they were unable to declare meaningful dividend or bonus to their respective shareholders, a development that the shareholders frown at.

Meanwhile, NAICOM has approved the 2015 financial statements of 45 out of 49 insurance companies that have so far submitted their accounts for approval, Leadership learnt.

Of the 45 insurers, Fin Insurance, Law Union & Rock Insurance Company Plc, Mansard Ins Plc, Consolidated Hallmark Insurance, Custodian, Standard Alliance Life Assurance, Royal Exchange General, among others, had earlier in the year, conducted their 2015 Annual General Meeting(AGM), after having their financial statements approved by the regulatory body.

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