Xplico Insurance is fighting to stay afloat after one of its creditors, Dorice Mwaka Mwakwekwe, filed a suit to have the underwriter wound up.
This comes at a time the insurer is facing financial woes over boardroom fights and reduced business, which have resulted to a push and pull with the regulator for failing to disclose its entire financials for the fourth quarter ended December 2021.
“Notice is given that a petition for the liquidation of the above-mentioned company by the High Court was on 17th March 2022, presented to the said court by Dorice Mwaka Mwakwekwe and the said petition is directed to be heard before the High Court sitting at Malindi on the 9th June 2022,” the Kenya gazette notice reads in part.
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“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 and a copy of the petition will be furnished by the undersigned to any creditor or contributory of the said company.”
The details of the liquidation suit are yet to be revealed.
In the third quarter of 2021, Xplico Insurance’s market share declined from 21.9 percent to 7.5 percent, after the public transport sector ditched the insurer.
Read: Clients Lose Cover As Resolution Insurance Is Placed Under Statutory Management
The biggest gainer of the slump at Xplico was Directline Insurance, which rose to control 69.6 percent of the market by September.
By the fourth quarter, Xplico had the most customer complaints at 26, indicating the firm’s failure to settle customer claims on time.
This comes days after its peer, Resolution Insurance, was placed under statutory management over Ksh6.5 billion in client cash, insurance claims, and creditor funds after its shareholders failed to recapitalise the business.
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