The Pensions and Insurance Authority (PIA) says it is aware of the court judgement relating to a guarantee issued by Madison General Insurance Limited and has since instituted a targeted inspection to assess the potential impact on the concerned insurance company and ultimately policy holders.

In a statement issued to Money FM News, Authority Communications Manager, Doreen Kambanganji said it is not unusual for an insurance company to guarantee a loan. 
Ms Kambangaji said the Authority has since dispelled fears about Madison General Insurance Limited and Madison Life Insurance Limited under Madison Financial Services.

“Pensions and Insurance Authority wishes to allay fears regarding Madison General Insurance Limited and Madison Life Insurance Limited under Madison Financial Services Plc” Ms Kambanganji said. 
She explained that the Authority has noted, with keen interest, social media reports regarding a court judgment in favor of Atlas Mara and not First National Bank as alluded to in social media circulation and the subsequent press release by the holding company, Madison Financial Services Plc, in relation to a guarantee by Madison General Insurance Limited.

“The public will note that 2020 licenses for Madison General Insurance Limited and Madison Life Insurance Limited were recently renewed having fulfilled the licensing requirements” She added. 
Ms Kambanganji said as at 31st December 2018, Madison General had the second largest market share in the general insurance subsector at 15% while Madison Life Insurance was the third largest insurance company in the life insurance subsector, with a market share of 13%.
“However, the Authority is aware of the court judgement relating to a guarantee issued by Madison General Insurance Limited and has since instituted a targeted