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New capital rules ease funding for insurance firms
Treasury secretary Henry Rotich has sought to ensure continuity in the ownership of the insurance companies by making it mandatory that the preference shares are irredeemable. PHOTO | FILE
The capital composition of insurance companies will be expanded, making it easier for insurers to raise new cash to enable them to comply with the recently introduced higher financing requirements.
Treasury secretary Henry Rotich has proposed to include preference shares, subordinated loans, share premiums and reserves in the calculation of an insurer’s capital position in the published Insurance Act amendment bill.
