Why More Insurance companies will file 2016 results late
A cross section of capital market experts have continued to kick against the harsh operating environment many businesses are confronted with, which they say continues to impact the insurance sector.
The harsh macroeconomic environment, the experts said, will continue to negatively impact the sector until economy improves, giving credence on why most insurance companies’ would continue to file their audited financial statement late, irrespective of sanctions that awaits them.
Experts pointed at illiquidity and the inability of corporate to honor agreements or take new policies as a debilitating factor in insurance business in the country.
It will be recalled that , Mrs. Funmi Babington-Ashaye, Managing Director, Risk Analyst Insurance Brokers, had earlier revealed that low liquidity discourages people from taking insurance covers while the foreign exchange challenge also make reinsurance business abroad difficult for insurance firms that want to re-insure their business concerns overseas.
Also, another stakeholder who spoke on condition of anonymity said that lack of funds will continue to prompt business managers to opt for short term covers, instead of full insurance covers for their businesses.
Daily Times recalls that National Insurance Commission (NAICOM) early in March reported that only two out of existing 59 insurance firms and two reinsurance companies had received its approval for their 2016 financial statements.
The insurance industry regulatory body, in a statement titled “Status of 2016 Financial Statements of insurance companies as at March 8th, 2017 gave the Names of the successful firms for 2016 accounts as FBN General Insurance, and Wapic Life Insurance.
The duo successfully had their account approved out of 12 insurance firms that had submitted their 2016 accounts.
The other ten that had as at that period filled their results with NAICOM, and waiting approval at by the commission, are Custodian Life ,Custodian and Allied. Wapic General Insurance, Ensure Insurance, Continental Reinsurance and Law Union and Rock.
However some of the insurance companies listed above like Custodian and Allied, Wapic among few other have received approval from NAICOM, and subsequently released same to the Nigerian Stock Exchange (NSE) and the investing public.
