Published: 06 July 2017

ZIMRE Holdings Limited (ZHL) has begun rebranding its reinsurance unit to bring its regional operations under Emeritus International, a Botswana-based holding company, the Financial Gazette can report.

Emeritus International, set up when ZHL was under the US Department of Treasury's Office of Foreign Assets Control (OFAC) sanctions, would now spearhead the growth of the ZHL's reinsurance business.

The rebranding exercise, which is expected to begin in the second half of the year, would include units in Mozambique, Botswana, Malawi and Zambia.

"We are at the stage of selecting the person to work with. We are going to do it in phases where we are going to start with reinsurance which is going to be named Emeritus International. We are going to put all the regional operations into one reinsurance company," said corporate affairs manager, Philip Mundangepfupfu.

He said the board had already approved the rebranding exercise, which would give a new lease of life to ZHL's offshore companies.

"We are starting with reinsurance because in terms of the sanctions, that was the area most affected so we want them to take off and recover. The second phase will entail rebranding the headquarters and other parts of our business," said Mundangepfupfu.

Last month ZHL group chief executive officer, Stanley Kudenga, said Emeritus would hedge the company from the current liquidity crunch after the group was removed from the sanctions list in February this year.

"This is a very critical investment. Emeritus gives us the hedge against Zimbabwe's cash crisis as some of our foreign businesses will now be housed under it," said Kudenga.

"Some of the group's foreign premiums will now be housed under Emeritus International and we can now also open an offshore account after the RBZ approved our request," he added.

The RBZ introduced foreign currency restrictions last year to deal with a foreign currency shortage that has disrupted foreign payments for raw materials and other critical imports by local companies.

Kudenga said Emeritus International had also been earmarked to mobilise external capital because Botswana had a low risk profile than Zimbabwe.

"Our focus is to unlock Emeritus International to use it as a useful investment vehicle to mobilise capital for the group's expansion and strengthening of the regional foothold," said Kudenga.

"There is huge interest in the insurance business in the continent because investors see it as a growth sector.

ZHL has vibrant business units in Mozambique where it partners the Mozambican government.

Although the penetration rate in the Mozambican market was at three percent in 2016, a growing middle class had spiked growth in the insurance industry.

ZHL has 51 percent stake in the Mozambican subsidiary.

"Like any other African country, the insurance penetration is low. But by market size, the Mozambican market is bigger than Zimbabwe and it's not as densely populated by other players although South African companies are coming up," said Kudenga.

- fingaz

You might also want to read this

• ZHL bounces back to profitability