In a major stride in direction of worldwide {financial} reporting requirements, Stanbic IBTC Insurance coverage, a subsidiary of Stanbic IBTC Holdings, has emerged as the primary insurance coverage firm in Nigeria to have efficiently obtained vetting and approval from the Nationwide Insurance coverage Fee (NAICOM) for its 2023 full 12 months {financial} report.
As the primary insurance coverage supplier to obtain such vetting by the trade regulator, this achievement comes on the heels of the insurance coverage firm’s adoption of the Worldwide {Financial} Reporting Customary (IFRS) 17 standardization course of, showcasing its dedication to transparency and adherence to world accounting practices.
The Worldwide {Financial} Reporting Customary (IFRS17) which was issued by the Worldwide Accounting Requirements Board in Could 2017; carried out in Nigeria in January 2023 and adopted by the Nationwide Insurance coverage Fee, mandates all insurance coverage corporations to improve their {financial} reporting mannequin by migrating from the IFRS4 mannequin to the IFRS17 mannequin. The IFRS 4 mannequin permits corporations to proceed utilizing current native accounting practices, resulting in inconsistencies and challenges in evaluating {financial} statements throughout completely different jurisdictions. Thus, the mannequin lacked uniformity in accounting practices in addition to hindered comparability and transparency.
Spurred by the necessity for a extra strong and complete customary that would higher tackle the complexities of insurance coverage contracts, the IFRS 17 represents a paradigm shift in accounting for insurance coverage contracts. The mannequin offers a constant and clear method to insurance coverage contract accounting. The mannequin additionally provides a foundation for customers of monetary statements to evaluate the impact that insurance coverage contracts have on the entity’s {financial} place, {financial} efficiency and money flows; in addition to offers simpler entry to exterior capital and a rise in overseas direct funding. The brand new standardization course of, the IFRS 17, contains the preparation of the 2023 financials together with the restatement of the 2021 and 2022 {financial} statements.
Commenting on the feat, Akinjide Orimolade, Chief Govt of Stanbic IBTC Insurance coverage, famous that the vetting by NAICOM is a testomony of Stanbic IBTC Insurance coverage’s dedication to worldwide {financial} reporting requirements, whereas giving stakeholders a transparent understanding of its {financial} place and efficiency.
“Being the primary insurer to have our {financial} report vetted by NAICOM, following the adoption of the IFRS17 standardisation mannequin, is a testomony to our unwavering dedication to worldwide accounting requirements. This milestone reinforces our dedication to transparency, belief, and operational excellence” stated Orimolade.
The insurer famous that the adoption of the IFRS 17 standardisation mannequin of monetary reporting by Stanbic IBTC Insurance coverage underscores the corporate’s dedication to upholding worldwide {financial} reporting requirements. It famous that by aligning its {financial} reporting with this internationally recognised framework, the insurer isn’t solely demonstrating its dedication to transparency but in addition aiming to instill confidence in its stakeholders.
“The adoption of the IFRS17 Standardisation Mannequin not solely enhances the standard of our {financial} reporting, but in addition signifies our proactive stance in direction of aligning with world finest practices. By embracing worldwide accounting requirements, we purpose to set a excessive benchmark for transparency and integrity within the insurance coverage trade” Orimolade stated.
The Stanbic IBTC Insurance coverage Chief Govt additionally famous that in a dynamic and quickly evolving insurance coverage panorama, the organistion’s dedication to worldwide accounting processes units a constructive priority for the trade. By selling transparency and adopting best-in-class requirements, the insurer is well-positioned to navigate challenges, drive sustainable development, and ship worth to its clients and shareholders.
“Our dedication to trade requirements of reporting goes past compliance – it displays our imaginative and prescient to drive sustainable development and construct long-term belief with our stakeholders. The adoption of the IFRS 17 framework underscores our dedication to operational effectivity, accuracy, and the very best ranges of monetary governance” he added.
Total, Stanbic IBTC Insurance coverage’s profitable vetting and approval of its {financial} report by NAICOM displays the corporate’s steadfast dedication to operational excellence, regulatory compliance, and stakeholder confidence. Because the insurance coverage sector continues to evolve, such initiatives underscore the significance of embracing world accounting requirements to foster belief, transparency, and long-term success within the trade.
