Nairobi, June 8 -- Old Mutual Holdings is seeking to restructure its balance sheet with the goal of clearing accumulated losses, a decision that will allow it to pay dividends.

The regional insurer plans to use its share premium of Sh4.66 billion to clear part of the accumulated losses, which stood at Sh7.06 billion by the end of 2025.

Share premium represents the amount investors pay above the assigned share value.

The Company Act bars an institution from paying dividends if it has accumulated losses.

If the transaction is approved, it will see Old Mutual's accumulated losses drop to Sh2.39 billion, with the company saying it will take additional actions to clear the balance.

"The board approved the commencement of a phased balance ...