The proposed project will present a detailed study of the financial reporting practices of Mansard Insurance Plc which will largely be based on it published financial statement for the year ended 2012. The project will cover all areas of the financial reporting systems that will include, reporting history, accounting policies, corporate governance, financial analysis, future outlook and limitations inherent in the Financial Statements.
The project proposal therefore presents brief information of Mansard Insurance Plc, evaluation of its current financial reporting practices, project methodology, proposed chapter headings and sub- Headings for the project report and a work ...view middle of the document...
The Company ranked amongst the top 3 insurance companies by market share in 2010 from 97th position in 2004 and became the most capitalized insurance company in Nigeria in the same year. Since then it has experienced tremendous growth with a turnover of N12.444billion($75.3million) with total asset and shareholders’ fund of N27.288billion($165.4million) and N 14.418billion ($87.4million) respectively as at December 31,2012(Mansard, 2014). The company made a return on equity of 11.6% in 2012 and a pre-tax profit of N1.3billion ($7.88million) in the third quarter in 2013. The company offers risk underwriting and related financial services which include life and non-life Insurance to its clients.
3.0 Literature Review:
There are limited study of Mansard Insurance Company in the literatures and very few related literatures on the insurance companies in Nigeria. In the recent past, Nigeria Insurance market has been described as potentially the biggest in Africa and is being repositioned. Potentially, Nigeria has the biggest insurance market in Africa but most of the large insurance businesses are ceded to foreign companies. Now the domestic industry is poised not only to penetrate deeper in the domestic market but to expand to other regions of the continent (Obaremi, 2007), ( Ogbonna & Ogwo, 2013).
The industry operational efficiency has been described as sub-optimal as a result of factors such as poor regulatory frame work, market suspicion, unfavorable macroeconomic environment, public poor attitude to insurance services, low insurance penetration of less than 1% , insurance density of 6.9% with industry global ranking of 61 (Ujunwa & Modebe, 2011)
Notwithstanding this shortcomings, Arena(2008) argued that the industry as financial intermediary, provider and transfer of risk indemnification, still remain a force in promoting economic growth and the level of economic development as measure by GDP. Close attention should therefore be given to their financial reporting system and performance.
This is the motivation behind choosing Insurance Company in Nigeria for this project.
4.0 Description of the methodology and data sources to be used
This project will involve detailed analysis of the company’s financial statement as at December 31, 2012(being the only available audited account as at the date of this proposal), its reporting history, corporate governance,...