Invesco Emerges Out of Bankruptcy

Nairobi, Jan 19, 2010 (The Nation/All Africa Global Media via COMTEX) -- Invesco Assurance Company has become the first matatu insurer to emerge from bankruptcy, after almost three years under statutory management.

Although the ownership structure of the new company has not been made public, Matatu Owners Association is said to control at least 80 per cent of the firm.

The purchase of 80 per cent shares of Invesco by the association will completely change the way passenger service vehicle insurance business is conducted in this country, a source told Nation.

Matatu Owners Association chairman, Mr Simon Kimutai, on Monday told the Nation that he was happy to receive the licence, but said he would give details on how the company will operate on Tuesday.

The commissioner of insurance, who is also Insurance Regulatory Authority chief executive, Mr Sammy Makove, said Monday that the insurer, under new management and ownership structure, has been issued with a trading licence.

"We would like to announce the reopening of Invesco Assurance Company and the termination of the statutory management," Mr Makove told reporters at his Nairobi office.

"The re-opened company shall be expected to comply with all provisions of the Insurance Act."

The commissioner of insurance placed the insurer under a statutory manager on February 29, 2007, as the company failed to compensate its insured and pay its debts.

But for the last 10 months, Matatu Owners Association and Invesco Assurance Company statutory manager Mr Geoffrey Njenga have been working on a rescue plan for the insurer. The association had hired financial consultants who confirmed that the business was viable.

Mr Makove said the statutory manager completed his evaluation of the company and submitted a final report to the authority in November 2009. The manager recommended that the company is still viable and can be revived under a restructured framework, he said.

"On consideration of the above proposal and details of the restructuring as provided by the statutory manager, the authority's board of directors accepted the recommendation that the company be revived as proposed," Mr Makove said.

He added that the insurer will deal with outstanding liabilities to policyholders and third parties upon verification of the authenticity of such claims.