The National Insurance Commission (NAICOM) which is the regulator that supervises operators in the insurance industry, has queried the audited results of two insurance firms.

NAICOM by statute must approve the audited accounts of all insurance companies before they are published on the Nigerian Stock Exchange. This is similar to what the CBN does.

Here are key highlights of the body’s review of audited results:

  • 49 insurance firms have submitted their 2016 audited financial statements.
  • NAICOM has approved the financial statements of 39 firms.
  • The commission is currently reviewing the statements of 8 firms namely: Nigerian Agricultural Insurance Corporation, Capital Express, Equity Assurance, Universal Insurance, UNIC Insurance and Saham Insurance.
  • Two firms KBL Insurance and Nigeria Reinsurance Corporation have been issued queries regarding their financial statements.

Consequences of the delay in approval

The Nigerian Stock Exchange (NSE) had last week suspended 17 companies from trading due to non submission of their financial statements. About 7 of the suspended companies were insurance firms.

A delay in approval by NAICOM means the affected firms that are listed will end up paying fines to both regulators. The insurance firms also risk suspension of their operating licence if the issues surrounding their financial statements are critical.

NAICOM  is the regulatory body in charge of the entire insurance industry. It was established by the NAICOM act of 1997 which was revised in 2003.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.

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