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African Alliance fined N46.1m for late account submission

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African Alliance Plc has paid N46. 1 million monetary fines for breaking the Nigerian Stock Exchange (NSE) rule on account submission by listed firms. According to data sourced from X-Compliance Report of the NSE dated March 23, 2018, African Alliance Insurance Plc paid a monetary fine of N46.1 million for late submission of its 2015 and 2016 audited accounts.

The insurer, investigation revealed, has failed to declare meaningful dividends or bonus to their shareholders for four consecutive years, while its results have not been quite impressive within those periods as well. The shareholders of the company have expressed their displeasure at the way the company is being run, stating that, instead of rewarding the shareholders who have stood by the company during trying times, the insurance company is busy paying millions of fines to regulatory bodies.Speaking on behalf of insurance firms’ shareholders, the President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said: “Some insurance companies have corporate governance issues.

We commend NAICOM because it will not approve any account unless it is thorough, kudos to the commission for safe guarding the interest of the investors as well as customers.” Insurance stocks, he said, were unhealthy for shareholders for some years now as they were unable to give good returns on investment, noting that this was the reason their prices have remained at par value. He said shareholders react to the results a company releases, its dividend payout, its future prospect, saying insurance companies have failed in all these.

“So, where do you expect the price to go? The price would remain as it is. It is the dividend payout that throws up the prices, and so long as you don’t pay a commensurate dividend to the shareholders, that is what you get,” he said. Huge fines and management expenses have also affected the reserves of the firm as it recorded N1.49 billion as management expenses and negative reserves amounting to -N21.05 billion. With the negative reserves, the company will not be able to meet most of its responsibilities especially prompt claims payment.

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