Madison Life Assurance Kenya Limited has announced plans to sell properties valued at KSh8 billion and quit the annuity business, seeking to restructure its balance sheet and boost capital.
The insurer said it has decided to cut annuity business, including investments in property which it terms as an expensive product. It will now focus on less expensive products such as education, investment and pension products.
Madison, which posted a net loss of KSh1 billion in the year ended December, had seen its capital ratio sink to negative 59% in the review period forcing a rethink of its current offering.
In April this year, Resolution Insurance has collapsed with over KSh6.5 billion in client cash, insurance claims, and creditor funds after its shareholders failed to recapitalise the business.
The company has been facing a number of challenges, particularly relating to its ability to meet its obligations and mitigate its inherent risks.
The Insurance Regulatory Authority (IRA) said the insurer had collected KSh4.1 billion in premiums from policyholders out of which 90% were medical customers.