Altfin Life Assurance commence dividend payment to creditors

Altfin Life Assurance commence dividend payment to creditors

By Insurance24

HARARE, Altfin Life Assurance has commenced the payment of dividend to its creditors following its liquidation in 2016.

The company was placed under liquidation in 2016, a year after insurance regulator, the Insurance and Pensions Commission (IPEC) cancelled its operating license for failing to meet prescribed minimum
capital requirements.

Altfin had failed to raise the required minimum capital of US$1,5 million at the end of 2013 and in April 2014, IPEC gave notice of its intention to cancel the short-term insurer’s licence and ordered it to stop disposing of its assets after failing to settle total gross outstanding claims worth US$3 million as at December 31, 2013.

Meanwhile, the dividend will be paid through the judicial manager Baker Tilly. “The  liquidation  account and plan of distribution of ALTFIN  Life Assurance Company  limited file  number CR(86/16) was confirmed on the 12th of march  2018,notice is hereby given   that a dividend   is in course of payment ,” read a notice.
At the time of litigation its assets were worth $2 million while liabilities were at US$3,3 million.

Preferred creditors were expected to recover the full amount owed while concurrent creditors would get 21 %of the owed amount.
Altfin was also facing several litigation cases worth US$1,4 million with Myramma Farm being owed $1,2 million while Cottco was owed $96 500. The company was a subsidiary of Altfin Holdings Limited.