The National Insurance Commission (NAICOM) has slammed punitive sanctions on IGI Plc over the uncertain financial state of the company. The measure followed sustained apprehension in the insurance industry over the rumored financial health of IGI Plc in recent past, especially after the death of its founder, Mr. Remi Olowude.
Below is the official statement from NAICOM on IGI Plc:
Regulatory Order
Consequent upon the examination and investigation of the activities of Industrial and General Insurance Company Limited (IG) and in the exercise of the powers conferred on it by the enabling law, the National Insurance Commission (NAICOM) hereby issue this regulatory order and directs that IGI shall:
1. Within two weeks from the date of this Regulatory Order appoint any one of the underlisted auditing firms to conduct a comprehensive
financial review of the company and submit the report to the commission:
a. KPMG
b. PWC
c. Delloitte
2. Mandate the auditing firm to, among others,:
a. Undertake a comprehensive review of your company’s accounting system;
b. Conduct capital verification; and
c. Validate the financial position of the company as at 31st July, 2015.
3. Not incur any expenditure in excess of N250,000.00 (two hundred and fifty thousand naira) without the prior approval of NAICOM
4. Not carry out new investments or dispose any of its assets without the prior approval of NAICOM.
5. Make a monthly report on its activities to NAICOM effective from the month of August 2015.
This Regulatory Order takes effect from 3rd August, 2015 and is for a period of six (6) months.
The Regulatory Order may be extended until such period when the Commission is satisfied that there is full compliance with the provisions
of the National Insurance Commission Act 1997 and the Insurance Act 2003 and the method of transacting business is such that your policyholders and potential policyholders are adequately protected.
These directives are for immediate compliance.
Mohammed Kari Deputy Commissioner (Technical)
NB: Kari is now the substantive Commissioner for Insurance
