African Alliance Insurance Plc, Cornerstone Insurance Plc, Equity Assurance Plc and Great Nigeria Insurance Plc have paid a total fine of N24.9 million fine to the Nigerian Stock Exchange (NSE) for filling their audited and interim financial statements after the expiration of the regulatory due date of March 31, NSE Compliance report as at February 17, has shown.
According to the NSE, the sanctions were applied in accordance with the provisions of Section 14 of Appendix 111 of the listing rules.
It stated that the fine came as a result of sanctions imposed for default in submission of their financial statements for December 31, 2014 and first, second, and third quarter accounts as at due dates.
Out of the fine, African Alliance got N4.2 million for failing to file its December 31, 2014, first quarter 2015 N3.3 million, second quarter N2.9 million and third quarter N1.6 million.
Cornerstone Insurance Plc was fined N700,000 for failing to submit December 31, 2015 financial statement.Equity Assurance Plc was punished twice for failing to submit December 31, 2015 and first quarter 2016. The company was fined N600,000 and N500,000.
Great Nigeria Insurance Plc was sanctioned four times. The periods of sanction are: December 31, 2014-N3.8 million, first quarter 2015-N3.8 million, second quarter 2015-N2.5 million and third quarter 2015-N1.2 million.
Commissioner for Insurance Mohammed Kari said shareholders need to query insurers on why fines were imposed on them by regulatory agencies.
He said the sanctions for any default or infraction by an operator are spelt out in the laws to the knowledge and understanding of the operators.
This, he stressed, may not be perfect, but as long as it remains the law, its provisions must be complied with and it is the responsibility of NAICOM, as the statutory regulatory agency of the sector to ensure that every operator plays by the rule.
He called on shareholders to demand explanations from their board of directors and management why such penalties are placed on them; incur high management expenses; fail to take advantage of the huge potentials in the market and the various market development initiatives introduced by NAICOM to expand their businesses, grow their revenue income and improve on their bottom-line to guarantee enhanced dividend payout to their shareholders.
“We are looking at these details and may be making them public in due course,” he added.