Baobab Re granted Composite operating licence

Baobab Re granted Composite operating licence

HARARE, The Insurance and Pensions Commissions (IPEC) have granted Baobab Re a composite operating licence which will allow parent company Zimre Holdings to amalgamate its Short term reinsurance and Life and Health Reassurance units.

Currently there are two IPEC registered Composite Reinsures which are First Mutual Reinsurance Company and Grand Reinsurance Company.

ZHL chief executive officer Stan Kudenga told shareholders that the amalgamation will allow the units to operate using an enlarged Balance Sheet.

“The issuance of a composite licence will now allow us to optimally utilize the capital available and strengthen our position as the most highly capitalised reinsurance Company in Zimbabwe,” he said.

Kudenga added that the amalgamation of the two operating units will also enhance cost management and alignment strategy.

He said ZHL’s capital base of local reinsurance operations is now approaching regional and international parity.

The group is currently in the process of growing and strengthening its regional reinsurance operations through managing and aligning costs to revenue as well as effective leveraging on Group assets to improve return on investments.

ZHL is exiting from Continental Re in Nigeria, where it has a 1.47 percent stake, and will utilise the proceeds to consolidate operations in Mozambique where it has a 51 percent stake in Mozambique Re. It is also exiting from Uganda Re where it holds a 2.43 percent stake.

As a result, the group anticipates profitable business growth in 2017.