NEM Insurance, Others Delay 2023FY On IFRS 17 Adoption
For implementing International Financial Reporting Standard 17 (IFRS), NEM insurance Plc, among others listed on the Nigerian Exchange Limited (NGX) are to delay 2023 filings of audited result and accounts to the investing public.
An investigation by InsideBusinessNG revealed that all the listed insurance companies on NGX submitted unaudited full year ended December 31, 2023, but delayed audited results.
It is stipulated by the listed requirement of NGX that a listed company with a full year ended December submits audited results on or before March 31, of every year.
Specifically, AIICO Insurance Plc, Axa mansard Insurance Plc, Consolidated Hallmark Holdings Plc, Cornerstone Insurance Plc, Coronation Insurance Plc, Guinea Insurance Plc, International Energy Insurance Plc LASACO Assurance Plc, Linkage Assurance Plc and Mutual Benefits Assurance Plc have submitted unaudited results for the year ended December 2023.
Others: Prestige Assurance Plc, Regency Alliance Insurance Plc, Sovereign Trust Insurance Plc. Sunu Assurances Nigeria Plc, Universal Insurance Plc and Veritas Kapital Assurance Plc, all have not submitted audited results to the investing public.
Company Secretary, NEM Insurance, Ifunanya Iwuagwu in a signed statement said, “This is due to unforeseen delays in concluding the approval process within the stipulated time, particularly with the introduction of the IFRS 17 Accounting Standards which require several changes in the disclosure methods.
“The Nigerian Insurers Association (NIA) after various engagements with the National Insurance Commission (NAICOM) on the above subject matter, has graciously obtained on behalf of listed insurance companies, an extension of time for submission of the Audited Financial Statements (“AFS”) to the Exchange and the Securities & Exchange Commission (SEC).
“Please be assured that the company is working assiduously to ensure that the Audited Financial Statements for the year ended 31st December 2023 is filed not later than the 30th of May 2024.”
Company Secretary, AIICO Insurance, Donald Kanu in a signed statement said the company’s audited Financial Statements (AFS) for the year ended December 31 2023 and the unaudited financial statements for the first quarter ending 31st March 2024 (UFS Q1, 2024) may not be filed within the regulatory due date of 30th March 2024 and 30th April 2024 respectively as required under the Post Listing Rules of the Exchange.
The statement reads, “This is as a result of the unanticipated delays occasioned by the adoption and implementation of IFRS 17 in the preparation of the audited financial statements for the year ended 31 December 2023.
“The adoption of IFRS 17 is pursuant to the directive issued by the Company’s primary regulator, the National Insurance Commission (NAICOM) effective 1st January 2024.
“The Company has deployed all necessary resources to ensure the Audited Financial Statements (AFS) for the year ended 31 December 2023 and the first quarter results for the period ending 31st March 2024 are filed on or before 29th May 2024.
“The Board and Management regret any inconvenience this delay may cause our esteemed shareholders and other stakeholders,” the statement read.
In addition, Cornerstone Insurance in a statement also attributed the delay in filing the 2023 AFS to unforeseen delays in concluding the audit process within the stipulated time, particularly with the introduction of the IFRS 17 Accounting Standards which require a number of changes in the reporting methods.
“Consequently, the Company has sought the approval of the NGX to extend the time within which to file its 2023 AFS. The Company hereby apologizes for this delay and assures all its stakeholders of its commitment to ensuring the submission and publication of its Audited Accounts on or before 29 June 2024,” the statement added.