The Nigerian Exchange Limited (NGX) has suspended trading in the shares of three insurance companies for failing to meet regulatory requirements on the timely filing of their audited financial statements.
The affected firms are Regency Alliance Insurance Plc, International Energy Insurance Plc, and Universal Insurance Plc.
The suspension, which took effect on Monday, September 1, 2025, was announced in a notice to investors and market participants.
NGX explained that the action was in line with its Default Filing Rules under the Rules for Filing of Accounts and Treatment of Default Filing.
According to the Exchange, issuers that fail to submit audited financial accounts by the stipulated deadline are first issued with a Filing Deficiency Notification (FDN).
If compliance is still not achieved within the cure period, the issuer receives a second notification, and trading in its shares is suspended.
Additionally, the matter is escalated to the Securities and Exchange Commission (SEC) for further regulatory action.
“Trading Licence Holders and the investing public are hereby notified that pursuant to Rule 3.1 of the Rules for Filing of Accounts and Treatment of Default Filing, if an issuer fails to file the relevant accounts by the expiration of the cure period, the Exchange will send a second filing deficiency notification within two business days, suspend trading in the issuer’s securities, and notify the SEC and the market within 24 hours,” NGX said in its statement.
The Exchange stressed that the suspensions are temporary measures and will be lifted immediately after the affected companies submit their outstanding audited financial statements for the year ended December 31, 2024.
The NGX noted that the suspension is part of its commitment to protect investors, uphold transparency, and strengthen confidence in the Nigerian capital market.
Timely disclosure of financial information, it said, allows shareholders and potential investors to make informed decisions about their investments.
Market analysts argue that persistent delays in filing audited results raise concerns about governance practices and financial health within the insurance industry.
By taking this decisive action, NGX seeks to send a strong message that non-compliance will not be tolerated.
The three suspended firms are relatively small players in Nigeria’s insurance sector, but the action could have ripple effects on investor confidence:
Regency Alliance Insurance Plc: A general insurance firm offering motor, fire, oil and gas, and other risk products.
International Energy Insurance Plc: Originally positioned as an energy-focused insurer, it has struggled with compliance issues and financial challenges in recent years.
Universal Insurance Plc: One of Nigeria’s older insurers, the firm provides life and general insurance products but has faced difficulties meeting regulatory capital requirements.
All three companies now face pressure to release their audited results quickly in order to avoid prolonged suspension and possible further sanctions.
The suspension means that investors cannot buy or sell shares of the affected companies until compliance is achieved.
This freeze could lock in shareholders who may have wanted to divest, potentially exposing them to risks if the firms’ eventual results reveal weak financial positions.
However, investor advocacy groups have welcomed NGX’s strict enforcement, describing it as a necessary step to improve corporate governance standards in Nigeria’s financial markets.
The Securities and Exchange Commission (SEC), which has been notified of the suspensions, is expected to monitor the situation closely.
If the companies fail to comply for an extended period, additional regulatory penalties, including fines, could follow.
The insurance sector in Nigeria has long been under pressure to improve transparency, recapitalisation, and operational efficiency.
Analysts believe that compliance failures highlight deeper structural challenges such as weak management practices, low adoption of technology, and difficulties in raising capital.
By cracking down on non-compliance, regulators hope to drive reforms that will strengthen the sector and align it with international best practices.
The suspension of Regency Alliance, International Energy, and Universal Insurance underscores the increasingly tough stance regulators are taking against defaulting issuers.
While it serves as a warning to other listed firms, it also reassures investors that the Nigerian capital market is prioritising accountability.
Market watchers expect the three insurers to work swiftly to release their delayed audited financials and restore trading on their shares.
Until then, the spotlight will remain firmly on the insurance sector, where greater scrutiny of corporate governance practices is now inevitable.