Firm eyes Sh1.1 billion capitalisation
Business
By
Standard Reporter
| Apr 25, 2016
Resolution Insurance Group has said it will inject an extra capital of Sh1.1 billion into the company by June this year as it moves to beat the regulator's new capital requirements.
The firm says this is part of the Sh2.5 billion extra capital it plans to pump in by 2018 to comply with the new requirements and solidify its market position.
"In December last year, we made a decision to put in an extra of Sh.2.5 billion. This will help sort out the risk-based capital requirement and position us to tap into opportunities of the anticipated massive acquisition," explained the firm's Group Chief Executive Peter Nduati.
Insurance companies are expected to shift to the Risk Based Capital (RBC) model after parliament passed the Insurance Bill 2014 last June, forcing Kenya's underwriters to seek additional funds to boost their capital.
The Insurance Regulatory Authority (IRA) has directed the country's 48 insurers to apply the risk-based regulations starting June this year.
READ MORE
Why Kenya feels like 1895 all over again
Government push for disability inclusion
Groups raise concerns over Tobacco Bill
Why Ruto, Ouattara meeting is important for Kenya and Ivory Coast
Ruto hosts African leaders at State House ahead of summit
Bill for two decades of failure by football officials is now due
Amsons Group pledges Sh4.5b for hospitals
Governor Waiguru banks on street lights to power Kirinyaga's 24hr economy
Governor Nassir launches construction of Kongowea Level 4 Hospital