NAICOM explains delay in financial statements, releases approved companies

The National Insurance Commission (NAICOM) has released approved 32 out of 41 firms’ 2016 financial statements submitted to it, blaming some of the firms for the delay, National Daily has gathered.

Recall that some insurance companies had informed their shareholders that they were unable to file their audited financial statements to the Nigerian Stock Exchange because they were awaiting NAICOM approval.

National Daily gathered that nine of the firms had queries and the commission was awaiting the response of the affected companies.

According to the Head, Corporate Affairs of NAICOM, Mr Rasaaq Salami, the reports that the commission was delaying clearance of insurance firms’ financial statements was untrue.

“What do you expect? NAICOM is not a rubber stamp commission. Once the financial account of any insurance company meets the required standard, it will be approved.”

He explained that some of the companies have the habit of submitting their accounts very late, adding other insurance companies’ financial statements have not been approved because some have been queries and a response to the queries is still being awaited.

Mr. Rasaaq Salami named FBN General Insurance, Wapic Life and Ensure Insurance companies as those whose financial statement have been approved.

Others are  Continental Reinsurance,  Zenith General Insurance , FBN Insurance, Zenith Life Assurance , Consolidated Hallmark Insurance, Custodian and Allied and  Custodian Life

Also, Law Union and Rock, Wapic General, AIICO Insurance, AXA Mansard, Prestige Assurance, Nem Insurance Plc, Regency Insurance Plc, Lasaco Assurance and UnityKapital Assurance were approved.

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He added that Cornerstone Insurance, Fin Insurance Plc Royal Exchange General, leadway Assurance Plc, Old Mutual General Insurance, Staco Assurance, Royal Prudential Life and Mutual Benefit Life assurance Plc companies were approved.

The Commission said that it also approved the financial statement of Sovereign Trust assurance, NSIA Insurance, Standard Alliance Life Assurance, Mutual Benefits Assurance Plc and Old Mutual Life assurance Plc.

He further said that few companies that their Financial Statement were queried include Nigeria Reinsurance Corporation, Guinea Insurance, United Metropolitan Nigeria Life Insurance Ltd and Standard Alliance General Insurance.

Salami noted that the review of the financial statement of Linkage Assurance, Sterling Assurance and KBL Insurance Ltd was in process.

National Daily gathered that NAICOM’s regulation 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.

The commission, in the past, had vowed to implement relevant measures to discourage companies from filing late returns and sanction errant ones appropriately.

It said actions to be taken include a detailed review of their accounting and financial reporting systems and restriction of certain activities until relevant returns are filed, among others.