Nigerian Exchange Group Report Flags Insurance Sector Dominance Among 2023 Audited Results Delinquents
The Nigerian Exchange Group’s regulatory arm, NGX RegCo, has raised red flags over the delayed submission of 2023 audited reports, with insurance companies taking center stage in the list of delinquent filers.
In its recent X-Compliance Report released on Friday, NGX RegCo revealed that out of 47 listed companies failing to submit their audited reports for 2023, a staggering 18 hailed from the insurance industry. This revelation underscores growing concerns regarding transparency and compliance within the sector.
Among the notable entities cited in the report are Cornerstone Insurance, Regency Alliance Insurance, Sovereign Trust Insurance, and Coronation Insurance, among others. Particularly alarming is the case of STACO Insurance Plc, which has failed to file its audited results for the past five years, marking a severe lapse in regulatory compliance.
The disclosure has prompted a closer examination of the industry’s financial health, with attention drawn to STACO Insurance’s significant loss after tax and a notable decline in gross premium. The company’s purported challenges, compounded by the delayed adoption of the International Financial Reporting Standards (IFRS) 17, further underscore the pressing need for sector-wide reforms and adherence to reporting standards.
In March, several insurers, including AIICO Insurance and Mutual Benefits Assurance, cited the adoption of IFRS 17 as a primary reason for the delay in filing their accounts. This international standard, aimed at enhancing transparency and risk management, imposes rigorous requirements on insurers to measure contracts accurately and disclose future profit expectations.
Despite the challenges posed by IFRS 17 implementation, the affected companies have projected a timeline for releasing their audited results between May and July 2024, seeking regulatory approval from the National Insurance Commission (NAICOM) before proceeding.
As the deadline for submission looms, industry observers emphasize the critical role of transparency and accountability in restoring investor confidence and driving sustainable growth. With the insurance sector closing Q4 2023 with a premium income of N1 trillion, according to NAICOM, the stakes for regulatory compliance have never been higher.
As stakeholders await further developments, the industry’s ability to navigate regulatory hurdles and embrace international best practices will be pivotal in shaping its trajectory and fostering investor trust in the months ahead.
