Resolution Insurance has stopped underwriting non-medical covers for three months as it seeks fresh capital injection.
The insurer’s acting Managing Director Bernard Githinji says there has been “significant delays” in raising capital, making it difficult to continue underwriting covers beyond medical.
The decision means the insurer will stop motor vehicle, homes, travel, personal accident, professional indemnity and school insurance. Also affected are policies for business, employee benefits, marine, bonds, engineering and hotel and restaurant insurance.
Mr Githinji says the move is a precautionary measure to safeguard the interests of policyholders while providing an opportunity to de-risk and restructure the general business books.
Latest data from the Insurance Regulatory Authority shows the insurer reported an underwriting loss of KSh457.32 million in the financial year ended December 2021, with 11 out of 12 classes of insurance posting losses.
Last year, UK based insurance firm, Linkham Group, acquired a stake in Resolution Insurance after purchasing 100% of the equity holding in the company from private equity impact investment firm, Leapfrog Investments. LeapFrog Investments had invested $18.7million for a majority stake in Resolution Insurance in 2015, through Resolution Health East Africa Limited; the latter’s holding company.
Resolution Insurance was founded in 2002 by Peter Nduati as a medical insurance provider in Kenya, changing its name to Resolution Insurance in 2013 as it expanded into East Africa.