‘UT Bank has no ownership in UT Life’ – Management

Management of UT Life Insurance says the company has not been affected whatsoever by the recent takeover of UT Bank by GCB Bank.

The Bank of Ghana on Monday, August 14, 2017 revoked the licences of UT and Capital banks due to their insolvency, leading to a seamless takeover of the two banks by GCB Bank.

UT Bank which was trading on the Ghana stock exchange, had its listing status also suspended.

Provisional figures show the total liability of UT Bank stands at GHC850 million while its total assets have been pegged at GHC112 million.

International auditing firm, Pricewaterhouse Coopers, is reported to have been contracted to dispose of the assets of the bank and use the proceeds to first settle creditors of UT Bank and the surplus, if any, given to investors and shareholders.

There were fears the exercise would affect UT Life Insurance as many held the company was an asset of the collapsed UT Bank.

But management of UT Life issued a statement Friday to dissociate itself from UT Bank, stating that “UT Bank has no ownership in UT Life”.

The management explained that over 80 per cent of UT Life was acquired by Leapfrog Investment in December 2015 from UT Holdings.

“UT Life is strongly capitalized at GHC36 million which is over the minimum regulatory requirement of GHC15 million. Our capital ratio of over 300% as of June 2017 and reflects our financial stability, strength and liquidity,” it said in the statement.

It has thus asked its customers to remain calm, and that offices of the company remain open for business.

By P.D Wedam||Ghana

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