Regulatory Intervention and Recapitalisation
Insurance Business reports that Wakam SA received an order from the French Prudential Supervision and Resolution Authority on September 25, temporarily banning the firm from writing new business or renewing contracts. The regulatory action followed a balance sheet review that caused Wakam to write down legacy assets and breach its solvency capital requirement, with its solvency coverage dropping to 66% at the end of 2025 against a regulatory floor of 100%. Despite shareholder injections totalling at least €119 million across 2025 and March 2026, the ACPR intervened.
Acquisition and Market Impact
According to Insurance Business, AmTrust International's acquisition recapitalises Wakam and lifts the operating restrictions that had blocked managing general agent and distribution partners from accessing capacity. The deal provides AmTrust with a licensed French insurer boasting 29 European passports, a white-label embedded insurance technology platform, and over 230 employees. Wakam UK remained independently solvent and unaffected throughout the process under PRA regulation.