Troubled Amaco Insurance fights to stay a float

Africa Merchant Assurance Company (Amaco) says it has paid almost half of the Sh10.2 million claim that nearly saw it liquidated.

The underwriter, linked to Deputy President William Ruto, is teetering with outstanding liabilities, saying it has paid out Sh4 billion in claims and legal liabilities in the last three years.

This is as it emerged that the firm’s current asset base is at Sh4 billion. “With specific reference to this case, Amaco has honoured its responsibility to settle the claim and has paid Sh4.3 million out of the figure of Sh10.2 million claimed,” said the underwriter in a notice.

“In addition, the company has initiated an amicable settlement with the petitioners with the view of reaching an agreement.”

Amaco was almost wound up after the High Court ruled in favour of an insolvency petition filed by six individuals owed Sh10.2 million.

However, last month, the insurer received some reprieve after a judge issued a temporary stay order pending an appeal by Amaco against the ruling. Amaco says it has “initiated” an amicable settlement with the petitioners.

The firm admitted having outstanding liabilities, noting that it was working to pay the genuine ones. “From 2017 to date, Amaco has paid out Sh4 billion in claims and legal liabilities despite the prevailing economic conditions,” said the firm.

The insurer said it was restructuring its balance sheet to meet its immediate genuine claims liabilities.

Statistics from the Insurance Regulatory Authority show that Amaco was this year one of the top insurance firms with many cases of customer complaints.

Delayed claim settlements was a major concern. Auctioneers raided Amaco’s offices over a Sh15 million debt owed to a health facility in June this year.