Insurance Firms Penalized ₦74 Million Over Filing Delays
The Nigerian Exchange (NGX) has imposed fines totaling ₦74 million on five insurance companies for failing to submit their financial reports on time. This was revealed in the latest X-Compliance Report, an initiative to uphold market integrity and protect investors.
Who Got Fined?
Here’s a breakdown of the penalties imposed on the defaulting firms:
1. African Alliance Insurance Plc
• Fine: ₦48.6 million
• Reason: Late submission of its 2022 annual report (filed November 22, 2023).
• Status: Last financial statement filed in over a year.
2. Lasaco Assurance Plc
• Fine: ₦8.7 million
• Reason: Delay in filing the 2023 Annual Financial Statement (filed September 25, 2024).
3. Regency Alliance Insurance Plc
• Fine: ₦7.8 million
• Reason: Delayed 2023 financial report submission (filed September 16, 2024).
4. Guinea Insurance Plc
• Fine: ₦3.4 million
• Reason: Late filing of its 2023 annual report (filed August 3, 2024).
5. Universal Insurance Plc
• Fine: ₦5.8 million (₦2.8 million for its 2023 annual report, ₦3 million for delayed Q1 2024 report).
• Status: Reports filed in July 2024.
Why It Matters ️
The NGX requires listed companies to submit financial statements promptly to ensure transparency and protect investors. Failure to comply attracts significant fines, reinforcing the exchange’s commitment to accountability.
African Alliance’s Struggles
• Regulatory Action: The National Insurance Commission (NAICOM) recently sacked African Alliance’s board and management for failing to meet obligations to policyholders, particularly annuitants.
• New Leadership: NAICOM appointed an interim board, including Dr. Haruna Mustapha (Chairman) and Jacob Erhabor (MD/CEO), to oversee a turnaround.
• Financial Challenges:
• Negative solvency margin: ₦4.04 billion as of December 31, 2022.
• Deficit: ₦29.8 billion in admissible assets against liabilities.
• Below the ₦2 billion solvency margin required for life insurance by NAICOM.
NGX’s Transparency Initiative
The X-Compliance Report highlights companies’ compliance with financial reporting rules, ensuring investors have reliable information. This move emphasizes the NGX’s role in maintaining trust in Nigeria’s capital market.
Stay informed for more market updates!
The Nigerian Exchange (NGX) has imposed fines totaling ₦74 million on five insurance companies for failing to submit their financial reports on time. This was revealed in the latest X-Compliance Report, an initiative to uphold market integrity and protect investors.
Who Got Fined?
Here’s a breakdown of the penalties imposed on the defaulting firms:
1. African Alliance Insurance Plc
• Fine: ₦48.6 million
• Reason: Late submission of its 2022 annual report (filed November 22, 2023).
• Status: Last financial statement filed in over a year.
2. Lasaco Assurance Plc
• Fine: ₦8.7 million
• Reason: Delay in filing the 2023 Annual Financial Statement (filed September 25, 2024).
3. Regency Alliance Insurance Plc
• Fine: ₦7.8 million
• Reason: Delayed 2023 financial report submission (filed September 16, 2024).
4. Guinea Insurance Plc
• Fine: ₦3.4 million
• Reason: Late filing of its 2023 annual report (filed August 3, 2024).
5. Universal Insurance Plc
• Fine: ₦5.8 million (₦2.8 million for its 2023 annual report, ₦3 million for delayed Q1 2024 report).
• Status: Reports filed in July 2024.
Why It Matters ️
The NGX requires listed companies to submit financial statements promptly to ensure transparency and protect investors. Failure to comply attracts significant fines, reinforcing the exchange’s commitment to accountability.
African Alliance’s Struggles
• Regulatory Action: The National Insurance Commission (NAICOM) recently sacked African Alliance’s board and management for failing to meet obligations to policyholders, particularly annuitants.
• New Leadership: NAICOM appointed an interim board, including Dr. Haruna Mustapha (Chairman) and Jacob Erhabor (MD/CEO), to oversee a turnaround.
• Financial Challenges:
• Negative solvency margin: ₦4.04 billion as of December 31, 2022.
• Deficit: ₦29.8 billion in admissible assets against liabilities.
• Below the ₦2 billion solvency margin required for life insurance by NAICOM.
NGX’s Transparency Initiative
The X-Compliance Report highlights companies’ compliance with financial reporting rules, ensuring investors have reliable information. This move emphasizes the NGX’s role in maintaining trust in Nigeria’s capital market.
Stay informed for more market updates!