2015: GNI, IGI, Linkage Assurance, 14 other firms struggle with accounts, fails to hold AGM

As co-operate companies across the country may have closed their account for the 2016 financial year, no fewer than 17 insurance firms, some of who were publicly quoted on the Nigerian Stock Exchange (NSE), are still struggling with their financial records which force them away from conducting their 2015 Annual General Meeting (AGM).

The number is against the total of 52 licensed insurance companies in the country according to information on the website of Nigerian Insurers Association (NIA)

Although, some of the companies according to records over the last five years have not been able to present financial record for the regulator, National Insurance Commission (NAICOM) to look into nor give back to their shareholders.

In the same vein, reports have showed that the affected companies had already closed their books for year under review which makes their 2015 AGM is not visible.

The requirement stipulates that any company, especially, listed entity, must give a 21-day notice to its shareholders prior to an AGM date, and as it stands, none of the companies has done so.

While the likes of Linkage Assurance, African Alliance Insurance, UNIC Insurance, NICON Insurance and Guinea Insurance are still battling regulatory issues, as they were unable to do the needful to have their accounts approved by the insurance industry regulator, the National Insurance Commission(NAICOM) as at 7th of November, 2016, Great Nigeria Insurance (GNI) Plc, Industrial and General Insurance (IGI) Plc, Goldlink Insurance, Alliance & General Insurance, Alliance & General Life, Investment & Allied Insurance Plc, Spring Life Assurance Plc, Nigeria Agricultural Insurance Corporation(NAIC) and Unitrust Insurance Company Ltd have not even submit their 2015 accounts to the regulatory authority.

It is also worthy of note that Fin Insurance, Equity Assurance and International Energy Insurance (IEI) Plc that have gotten their accounts approved, were unable to brief their respective shareholders on the financial positions of the companies in 2015 financial year end.

Meanwhile, most of the affected underwriters are loss-making institutions and till date are still having challenges balancing their books.

The last time GNI Plc briefed its shareholders on its financial status was in 2014 financial year, when it combined three AGMs together.

However, some investors are already trying to acquire the company after years of loss-making streak, which could have be a turnaround in the fortune of the firm.

Equity Assurance on the other hand, has equally gotten approval from NAICOM to go ahead with its 2015 AGM, but a Cote D’ Ivoire Insurance Company, Sunu Assurances Vie Cote D’Ivoire, earlier in the year, acquired a 60 percent stake in the company, which market analysts say could be responsible for its inability to hold the AGM.

Guinea Insurance, has had its account approved, but have internal issues to settle before holding its 2015 AGM. Cornerstone Insurance acquired FIN Insurance, a transaction that affected its ability to hold its 2015 AGM.

Therefore, the shareholders of the 17 insurers were left in the dark as to the state of their investments in those companies.

Although, most of the companies have financial challenges that is clipping their financial strength to do certain things, such as AGM but there is no record of any of them not paying claims as at when due. But the shareholders have continued to suffer the heat of the failures of the managers of the companies.