The board of the AMI Assurances has announced that it will increase capital by TND33 million (US$16.9 million) to meet solvency requirements. The proposed increase is subject to approval by an extraordinary general meeting to be held on 3 October, reported Ecofin Agency.
An in-depth actuarial audit conducted by the company in the first half of 2015 identified deficiencies in technical and financial provisions in 2013 and prior years. The shortfalls have been fully met from the company’s own funds that correspond to half the company’s capital. The capital, however, is now below the required threshold for the insurance sector.
Chairman Ilyes Jouini said that the restructuring programme approved by shareholders last year, aimed at strengthening the technical and financial situation of the company, has yet to be completed. This programme includes a search for a strategic partner that can strengthen the competitive position of AMI Assurances while ensuring that capital requirements are met.
AMI Assurances is the fourth-largest non-life insurer in the Tunisian market, due to its leading share of the auto insurance market. It reported a profit of TND5.8 million for the financial year ended 31 December 2014.
Last year, AMI Assurances changed its status from an insurance mutual to that of a limited company to strengthen its capital base. It raised more than TND31 million in capital last year.
TND1 = US$0.51