FMHL targets 81% shareholding in Nicozdiamond by year end.. to launch micro-insurance products
By Insurance24
HARARE, First Mutual Holdings Limited (FMHL) says is optimistic of having 81% controlling stake of short term insurer NicozDiamond.
Group chief executive officer Doug Hoto in an interview said the acquisition transaction is on course and going through a pace it should.
“Its currently underway, it’s on course, it’s not taking longer or shorter its going the way it should. We are sure by year end we will have 81% of Nicoz Diamond. We have been through with the acquisition just that there is a process we have to go through,” he said
Last year December, FMHL advised that the Group had received regulatory approval for the acquisition of the entire issued share capital of NicozDiamond Insurance Limited (“NDIL”).
That saw the National Social Security Authority (“NSSA”) transferring to FMHL 300,263,184 (three hundred million two hundred and sixty three thousand one hundred and eighty four) NDIL shares constituting 50.89% of the entire issued shares of NDIL.
NSSA was reported to be reported to be in the process of acquiring additional 177,161,256 shares, representing 30.03% shareholding in NDIL, from a third party.
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On other hand, Hoto said while much is not happening within the insurance industry, the Regulator is encouraging investments into micro-insurance products.
“The industry regulator is encouraging micro insurance so we have to play our part in that. However we are still at our preliminary stages, and we are still researching on how to go about it but in line with the regulator we are looking at it,” he said.
The Insurance and Pensions Commission (IPEC) last year unveiled the micro insurance regulatory framework as the regulator sought to increase insurance penetration ratio to 20% in the next two years from the current 3, 6 % through micro insurance which is largely affordable to low income earners.
According to a FinScope survey of 2014, 70% of the adults in the country are not insured and of the 3% with insurance, 77% of them were in respect if funeral insurance.
