ZIMRE Holdings has secured regulatory approvals to consolidate its regional reinsurance assets into an entity that will list on the Botswana Stock Exchange (BSE).
The regional operations include the wholly-owned Malawi Reinsurance and Zambian Reinsurance, its shareholding in First Reinsurance of Botswana and Uganda Reinsurance where it holds 2.43 percent shares which will be folded into Emeritus International Reinsurance Company which will list separately on the BSE.
According to The Source, Zimre chief executive Mr Stanley Kudenga said the group was still waiting for approval from Zimbabwe authorities.
“We have also obtained regulatory approvals in the respective jurisdictions, for the transfer of the reinsurance assets from Zambia, Botswana, and Malawi/Mozambique to Emeritus International Reinsurance Company,” he was quoted as saying.
Mr Kudenga said they were now working on a three-year time frame which starts this year to finish consolidation of reinsurance operations.
“ZHL is working on a three-year time frame to complete the process of consolidating the reinsurance operations and listing on the BSE.
“As you are aware cross border investments and transactions by their very nature take time to consummate because of the need to obtain different regulatory approvals,” he said.
Mr Kudenga said despite blanketing its assets under one base, the group would maintain regional operations.
“We are just going to operate in those markets but in terms of shareholding it is going to be from Botswana base,” he said, adding that restructuring and strengthening of the reinsurance operations was expected to further enhance their contributions in absolute terms.
The group reinsurance operations contributed 74.8 percent of total revenue in 2017 while foreign operations contributed 44.1 percent of the total revenue.
The group’s interests include insurance, property and agriculture.
Last year, the group announced that it had begun negotiations that would culminate in the disposal of some of its assets to fund future growth. — The Source/Business Chronicle