Yet another bid to wind up Amaco

A fresh bid to wind up Africa Merchant Assurance Company (Amaco) looms after a Nairobi businessman moved to the High Court seeking liquidation.

Bernard Kihiu whose application got a nod to proceed on March 4 invited other petitioners aggrieved by Amaco to join his application or those opposed to the petition to file objection ahead of the April 17 hearing.

“Any creditor or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing in person or by his advocate for that purpose,” said the notice on the petition served via publication in last Friday’s Kenya gazette and the dailies.

Reason behind Mr Kihiu’s move to liquidate Amaco which continues to struggle to return to profitability was not immediately clear.

The latest move adds to the firm’s woes.

According to a recent Insurance Regulatory Authority’s (IRA) report, Amaco closed the year with the highest cases of customer complaints due to delayed settlement of claims.

The watchdog reported 1,649 cases of unsettled liability claims, compared to its second quarter 1,705 cases during which 169 were settled.

Outstanding non-liability claims stood at 2,005 cases up from 1,907 reported in the quarter.

Some 444 fresh claims were made and 346 claims paid.

Last June, an auctioneer raided the offices of the underwriter on Mombasa Road, Nairobi, over a Sh15 million debt owed to Mama Rael Medical Clinic.

In 2018 September, auctioneers stormed the insurer’s Nyeri branch and carried away furniture and machines worth more than Sh100,000.

Last year, Amaco recorded a Sh75 million after-tax profit mainly boosted by lower operating costs.

Liabilities decreased to 17 percent to stand at Sh1.8 billion compared to Sh2.1 billion the previous year.

The firm draws up to 62.6 per cent of its business worth Sh2 billion from motor premiums.

Amaco controls a 1.69 percent share of the insurance market.