NGX Suspends Niger Insurance, African Alliance, Two Others For Non-submission Of 2020 Accounts

By CLEMENT OGBEMUDIA On Jul 5, 2021

For failing to meet up with post listing requirements, the Nigerian Exchange Limited (NGX) has suspended the African Alliance Insurance Plc, and two other insurers from the bourse.

Tourist Company of Nigeria which also featured on the suspension list, join the duo of Niger Insurance Plc and Royal Exchange Plc to face the wrath of the Exchange for their failure to file their 2020 Audited Financial Statements for the year ended 31 December, seven months into another year.

The NGX in a notification to the investing public, stated that the four companies were axed from the Nigerian Exchange Limited (the Exchange) effective on Friday, 2 July 2021.

Rule 3.1, One of the rules for Filing of Accounts and Treatment of Default Filing, (Default Filing Rules), states that if an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange reserves the right to suspend trading in the Issue’s securities and notify the SEC and investing public within twenty-four (24) hours of the suspension.

The NGX said hence the suspension of trading in the shares of the four companies will/can only be lifted upon the submission of the relevant accounts, provided NGX Regulation Limited is satisfied that the accounts comply fully with all applicable rules of the Exchange.

Some weeks ago, Niger Insurance Plc was suspended June 23 by the Nigerian Insurers Association (NIA) for defaulting on obligation to policyholders. This will definitely compound the woes of the hitherto frontline underwriter which is struggling to convince its shareholders and clients of its footing in the market

The NIA issued the expulsion via a public notice expelling Niger Insurance, Industrial and General Insurance Company Ltd and Standard Alliance Insurance for failing to meet their obligations to policy holders thus negating the basic principles of insurance.

However, responding, the Board and Management of Niger Insurance Plc said that the company had paid out the sum of N1.16 billion to policyholders as claims from 2020 to date.

Niger Insurance further noted that the company plans to liquidate some of its real estate assets to help meet its obligation and further alleviate the plight of policyholders.