Firm eyes Sh1.1 billion capitalisation

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.

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