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Written off debts widen Resolution's loss to Sh425mn

Resolution Insurance CEO Peter Nduati. FILE PHOTO | DIANA NGILA | NMG
Resolution Insurance CEO Peter Nduati. FILE PHOTO | DIANA NGILA | NMG 

Resolution Insurance has slipped further into the red, reporting a Sh424.9 million net loss for the period to December 2016 from the previous year’s Sh335.6 million loss.

The firm was impacted by changes in its reinsurance agreements, which saw the business write off Sh176 million in historical balances and a further Sh119 million after re-aligning its reinsurance commission accounting policies.

Without the effect of these one-offs, Resolution – which has a presence in Kenya, Uganda and Tanzania -- says it would have made a net loss of Sh288 million last year and Sh246 million the previous year.

“Following reconciliations with the 2015 panel of reinsurers, it was determined that the accounting treatment of the 2015 insurance treaty did not properly reflect the provisions of the agreement,” Resolution said in a statement.