Stanbic IBTC Insurance receives NAICOM approval for its 2023 financial report

Representing a significant step towards international financial reporting standards, Stanbic IBTC Insurance, a subsidiary of Stanbic IBTC Holdings, has become the first insurance company in Nigeria to successfully pass the National Insurance Commission (NAICOM) verification and approval for its full year 2023 financial report.

This achievement, as the first insurer to undergo such review by an industry regulator, comes on the heels of the insurance company’s adoption of the International Financial Reporting Standard (IFRS) 17 standardization process, demonstrating its commitment to transparency and adherence to global accounting practices.

International Financial Reporting Standard (IFRS17) issued by the International Accounting Standards Board in May 2017; implemented in Nigeria in January 2023 and adopted by the National Insurance Commission, requires all insurance companies to upgrade their financial reporting model by migrating from the IFRS4 model to the IFRS17 model. The IFRS 4 model allows companies to continue to use existing local accounting practices, which leads to inconsistencies and challenges in comparing financial statements across jurisdictions. The model thus lacked uniformity in accounting practices and hampered comparability and transparency.

Spurred by the need for a more robust and comprehensive standard that can better address the complexity of insurance contracts, IFRS 17 represents a paradigm shift in insurance contract accounting. The model provides a consistent and transparent approach to accounting for insurance contracts. The model also provides users of financial statements with a basis for assessing the impact of insurance contracts on the entity’s financial position, financial results and cash flows; and also provides easier access to external capital and an increase in foreign direct investment. The new IFRS 17 standardization process includes the preparation of financial statements for 2023 along with the transformation of financial statements for 2021 and 2022.

Commenting on the feat, Akinjide Orimolade, Chief Executive Officer, Stanbic IBTC Insurance, noted that the verification by NAICOM demonstrates Stanbic IBTC Insurance’s commitment to international financial reporting standards, while providing stakeholders with a clear understanding of its financial position and performance.

“Being the first insurer to have our financial statements audited by NAICOM following the adoption of the IFRS17 standardization model is a testament to our unwavering commitment to international accounting standards. This milestone reinforces our commitment to transparency, trust and operational excellence,” Orimolade said.

The insurer noted that Stanbic IBTC Insurance’s adoption of the IFRS 17 standard financial reporting model highlights the company’s commitment to international financial reporting standards. She noted that by aligning its financial reporting with this internationally recognized framework, the insurer is not only demonstrating its commitment to transparency, but also seeking to instill confidence in its stakeholders.

“Adopting the IFRS17 standardization model not only improves the quality of our financial reporting, but also signifies our proactive attitude in striving to adapt to global best practices. By adopting international accounting standards, we aim to set a high standard of transparency and honesty in the insurance industry,” Orimolade said.

The CEO of Stanbic IBTC Insurance also noted that in a dynamic and rapidly evolving insurance landscape, the organization’s involvement in international accounting processes is a positive priority for the industry. By promoting transparency and adopting best-in-class standards, the insurer is well-positioned to address challenges, drive sustainable growth and deliver value to its customers and shareholders.

“Our commitment to industry reporting standards goes beyond compliance – it reflects our vision to drive sustainable growth and build long-term trust with our stakeholders. The adoption of the IFRS 17 framework underlines our commitment to operational efficiency, accuracy and the highest level of financial management,” he added.

Overall, the successful review and approval of Stanbic IBTC Insurance’s financial statements by NAICOM reflects the company’s unwavering commitment to operational excellence, regulatory compliance and stakeholder confidence. As the insurance industry evolves, such initiatives underscore the importance of adopting global accounting standards to support trust, transparency and long-term success in the industry.