Players in the insurance sector dominated the latest list of delinquent filers of 2023 audited results released by the regulatory arm of the Nigerian Exchange Group in its X-Compliance report.
According to a report from NGX RegCo, 47 listed companies failed to submit their audited reports for 2023.
The listed companies cut across different sectors of the economy.
However, an analysis of the report showed that 18 of the 47 companies were from the insurance industry.
They include Cornerstone Insurance, Regency Alliance Insurance, Sovereign Trust Insurance, Coronation Insurance, Mutual Benefits Assurance, Linkage Assurance, Axa Mansard Insurance, Guinea Insurance, Veritas Kapital Assurance, Sunu Assurances, AIICO Insurance, Lasaco Assurance, NEM Insurance and Prestige Assurance, which the NGX has also tagged as being below listing standard.
Others are Niger Insurance, which has released its financial statements since 2021, and Goldlink Insurance, which has the NGX MRS ticker, indicating that it has missed regulatory filings and restructuring, has not filed audited results for the last four years.
Standard Alliance Insurance Plc has missed regulatory filings for three years, 2020–2023, and STACO Insurance Plc is the worst culprit, having failed to file its audited results for 2018 to 2023.
A check on the STACO Insurance investor portal revealed a management account for the period ended September 2022, where it reported a N2.17bn loss after tax, indicating a 99.47 per cent dip from the previous year.
Its gross premium also declined by 28.14 per cent to N180.55m from N251.27m in 2021.
Meanwhile, several players in the industry had written to the exchange in March to indicate their inability to file their accounts at the stipulated time, citing the adoption of the IFRS 17 standards as the reason for the delay.
Those that sought the exchange’s permission for delayed filing included Coronation Insurance; Cornerstone Insurance; Lasaco Assurance; NEM Insurance; Prestige Assurance; Mutual Benefits, which blamed migration to a new insurance solution in the third quarter of 2023 for the delay; Linkage Assurance; Sunu Assurance; Axa Mansard; Guinea Insurance; Veritas Kapital Assurance and Regency Alliance Insurance.
AIICO Insurance, in a corporate notice filed with the NGX on April 19, said it was seeking regulatory approval from the National Insurance Commission before filing its 2023 audited financial statement.
The affected companies have projected that they will release their audited results between the end of May and July 2024.
According to the International Financial Reporting Standards Fact Sheet, IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts.
This requirement will provide transparent reporting about a company’s financial position and risk.
IFRS 17 requires a company to recognise profits as it delivers insurance services (rather than when it receives premiums) and to provide information about insurance contract profits the company expects to recognise in the future.
This information will provide metrics that can be used to evaluate the performance of insurers and how that performance changes over time.
IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after January 1, 2023, Deloitte said.
According to NAICOM, the insurance sector closed Q4 2023 with a premium income of N1tn, a target set by the regulator 14 years ago.
Speaking on an anonymous basis, an industry source said that the regulator had sought a two-month extension for listed companies which is expected to elapse at the end of May.
The source said, “For listed companies expected to file their results at the end of March on the NGX, the NAICOM sought an extension period for them to enable them to complete the process, which is expected to come to an end this month.”
