Only two out of existing 59 insurance firms and two reinsurance companies have secured approval for their 2016 financial statements by the insurance industry regulatory body, the National insurance Commission (NAICOM).
THISDAY checks also revealed that five firms are still battling to secure the commission’s approval for their 2015 financial statements.
NAICOM, in a statement on this 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 who had submitted theirs are at various stages of examination by the commission.
Custodian Life is at review stage, the same thing with Custodian and Allied. Wapic General Insurance is on Review in Process stage, the same with Ensure InsuranceI, Continental Reinsurance is also on Review in process, same with Law Union and Rock.
FBNInsurance is also on Review in process with Consolidated Hall Mark Insurance.
Also Zenith General Insurance, and Zenith Life Assurance are at the same stage of Review in process.
The commission is silent on the status of the remaining 48 insurance and one reinsurance firms as such it is not certain whether they have submitted their 2016 financial statements or not
For the 2015 financial statements, the following six insurance firms are yet to secure approval for their accounts, Great Nigeria Insurance Plc, NICON Insurance Ltd,Universal Insurance these have their accounts queried .
African Alliance Insurance was referred to Financial Reporting Council, while Investment and Allied Insurance Plc has its response to query still under review. Goldlink Insurance account is still under review.
Recently, the Managing Director of Universal Insurance Ben Ujoatuonu, told THISDAY that his company, had since last year, submitted its financial reports for 2015 to NAICOM but was directed by the regulator, to give all its assets titles in its name.
He informed that this has been done and that the company has met other requirements of the regulator including preparation of 2016 annual report which he said will be submitted very soon.
The Insurance Act 2003 mandates insurance companies to file their annual accounts, six months after the financial year.
The law for filing of annual returns and accounts states that “all insurance and re-insurance companies shall submit to the Commission three copies each of duly audited financial statements and annual returns in prescribed forms.
“In respect of operation of the company for 2010, returns shall be filed on, or before 30th June, 2011. Failure to file annual returns as prescribed by Section 26 of the Insurance Act, 2003 constitutes a ground for cancellation of operating licence.”
It states that “an insurer shall be deemed to have failed to file its annual returns if the provisions of Section 26 of the Insurance Act 2003, are not met 12 months after the end of the financial year. For purposes of compliance, accounting period shall run from 1st January to 31st December, 2010,” it added.