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HomeWorld NewsLiberty boosts its life unit with Sh130 million capital

Liberty boosts its life unit with Sh130 million capital

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Companies

Liberty boosts its life unit with Sh130 million capital


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Liberty Life Insurance Kenya Managing Director Abel Munda. FILE PHOTO | NMG

Liberty Kenya Holdings has invested a further Sh130 million in its subsidiary Liberty Life Assurance by subscribing to an additional 6.5 million shares.

The life unit which is fully owned by the Nairobi Securities Exchange-listed firm, increased its authorised share capital by seven million shares.

Read: Liberty earns Sh500m from properties

“During the year, Liberty Life Assurance Kenya Limited increased its authorised capital by 7,000,000 shares. Liberty Kenya Holdings subscribed and paid for 6,500,000 shares at a par value of KShs 20 on 30 June 2022,” the parent firm says in its latest annual report.

Its cumulative investment in the subsidiary subsequently increased to Sh1.95 billion from Sh1.82 billion.

The additional capital serves to prop up the life’s unit funding base to stick above regulatory requirements.

Long-term insurance businesses in Kenya are required to maintain a solvency ratio of 200 percent and hold a minimum paid-up capital of Sh400 million.

Liberty Holdings deploys the life unit to engage in the business of insurance and wealth management.

The unit registered a six percent year-on-year insurance premium growth but suffered volatility as the investment market from the decline in values of listed equities and bonds.

Liberty Life Assurance has provided insurance services in Kenya since 1964 with investment products covering retirement, life and education.

Liberty Holdings Limited became a strategic investor in Liberty Life Assurance, formerly CfC Life, in 2011.

Read: Insurance customers cash out Sh10 billion

Other subsidiaries fully owned by the holding company are Heritage Insurance Company Kenya Limited and CFC Investments Limited.

Further, the company has a 60 percent stake in Heritage Insurance Company Tanzania Limited.

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