Insurance companies intending to enter into a merger are required to appoint an actuary licensed by the Insurance Regulatory Unit to prepare a report on the merger transaction. This engagement guarantees the integrity of fair valuation of the shareholders’ rights for both merging companies, and sound recalculation of the number and value of the new shares resulting from the merger, and that they have been properly and fairly measured.
What are the legal and regulatory mandates that require insurance companies to prepare the actuary’s report on mergers?
Article 100, clause 5, of the Executive Regulations of Law No. 125 of 2019 regarding the regulation of insurance stipulates the following:
“The merger application shall be submitted to the IRU on the form prepared for this purpose, accompanied by the following:
- A report by an actuary registered in the IRU Register indicating that the merger is not detrimental to the rights of policyholders, beneficiaries or third parties in general.”
What is the added value for business entities from engaging the services of preparing the actuary’s report on mergers?
- Ensuring that the rights of policyholders, beneficiaries, and third parties are protected.
- Providing a comprehensive valuation and examination of all assets and liabilities of the companies involved in the merger through actuarial analysis.
- Enhancing stakeholders’ confidence in the merger valuations.
What are the services provided by Baker Tilly Kuwait?
Actuary’s report on mergers.
- Actuarial Technical Reserves
- Actuarial Report on Employee Benefits
- Actuary’s Report on Examining the Financial Position
- Actuary’s Certificate of Authenticity of Insurance Operations for Licensing Purposes
- Actuary’s Certificate of Authenticity of Insurance Operations for Acquisition Purposes
- Actuary’s Certificate for Licensing a Foreign Insurer
- Preparing Actuarial Study on Technical Reserves
- Actuarial Attestation of Financial Position of Insurance Companies
- IFRS 17 Engine (Calculator) Managed Service