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.