13 insurance firms to pay N5, 000 penalty daily over late result Linkage, Niger, Guinea, others queried
Thirteen Insurance firms are likely to be faced with a daily fine of N5,00.00 for non- submission of their 2016 audited financial statements, starting form June 30, 2017, as provided by the Insurance Act.
Rasaaq Salami, spokesman for National Insurance Commission (NAICOM) recently said that out of the 41 insurance companies that submitted their 2016 accounts, NAICOM approved 32, and queried the accounts of nine companies namely: ARM Life, Nigerian Re, UBA Metropolitan Life, Sterling Assurance, KBL Insurance, Linkage Assurance, Standard Alliance General, Niger Insurance, and Guinea Insurance.
He said that, irrespective of the nine submitted accounts that were queried, about 13 other insurance firms were yet to submit their audited accounts to NAICOM, and have till June 30th to deliver.
The companies, yet to submit their 2016 audited accounts, according to NAICOM, include Goldlink Insurance, Nicon Insurance, IGI, IEI, African Alliance, NAIC Insurance, Unic Insurance, and Great Nigeria Insurance.
Five listed insurance firms listed on the Nigerian Stock Exchange (NSE) were, however, captured by the x-compliance report and may for none submission of their 2016 audited financial statements for the period ended 31 December, 2016.
Daily Times Nigeria recalls that NAICOM recently warned insurance firms on late submission of their audited financial statements, saying that imminent daily fine for late submission will commence July 01, 2017.
NAICOM warns that any of the 58 insurance firms, which fail on timely submission of 2016 audited result, or results falling below IFRS standard, risks withdrawal of operational licenses in line with the Insurance Act of 2003.
Meanwhile, the Nigerian Stock Exchange (NSE) X-compliance report as at Friday, June 23rd 2017, showed that about five insurance firms are likely to face the NAICOM’s fine of N5,000.00 daily , should they fail to submit their results before the end of second quarter 2017 (Q1), on June 30th 2017.
The Insurance Act imposes a daily fine of N5, 000.00 against firms that failed to meet the June 30th deadline.
Some of the listed insurance companies and few unlisted companies have been noted as likely victims of the Insurance ACT, the companies, according to the NSE X-Compliance report are, Equity Assurance, Guinea Insurance and Sovereign Trust Insurance, for failing to Non Rendition of 2016 audited financial statements.
Others are, African Alliance Insurance and Universal Insurance Company, both of which are labelled Minimum Regulatory Fillings (MRF) for none rendition of their 2015 audited financial statements.
NAICOM rule requires insurance firms to submit their financial statements on or before the end of (Q2) second quarter (June 30th) every year, or barred from engaging in further business activities.
The Commission said 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.
