Staff Writer
FBC Holdings Limited says its insurance businesses are continuously adapting to industry developments as the insurance industry faced mixed fortunes in 2024, Insurance 24 reports
On the upside, FBC said the sector recorded notable developments across various dimensions, including market
performance, technological adoption and innovation, to cater to customers’ diverse needs.
In a statement accompanying the group’s financial results for FY24, FBC chairperson Hebert Nkala said on the downside, the industry is navigating a complex economic landscape where disposable incomes and corporate revenues are low, impacting the demand for insurance products.
“Insurance uptake has remained low, with the industry shifting toward micro-insurance products that align with consumer incomes. Our insurance businesses are continuously adapting to
industry developments,” he said.
On the regulatory front, the Insurance and Pensions Commission (IPEC) introduced significant reforms, including the Insurance and Pensions Commission Amendment Bill, gazetted in December 2024, which aligns industry practices with global standards.
“During the same period, IPEC also implemented the compensation framework guidelines for pensions and life assurance products and reviewed submissions under the Zimbabwe Integrated Capital and Risk Project (ZICARP),” he said.
He added that the enforcement of “No premium, no coverage” through SI 81 of 2023 has benefited insurance providers by ensuring timely premium collection and, consequently, has significantly strengthened the sector.
During the period under review, FBC Insurance reported a profit before tax of ZWG 28 million, spurred by investment income.
Business operations, however, recorded an insurance service loss of ZWG 2.4 million due to lower revenue generation and higher ceded premiums.
Given the current economic environment, the group indicated that the focus was on maximising investment income and enhancing premium revenue generation.
Commenting on the performance, FBC CE Trynos Kufazvinei said the company was targeting new clients and markets to support its growth and preserve its balance sheet.
“FBC Reinsurance (FBC Re) posted a ZWG 117.2 million profit before tax, primarily driven by investment income.
“The company, however, recorded an insurance service loss of ZWG 45.9 million due to higher-than-expected claims, partly caused by exchange rate fluctuations between premium collection and claim settlement.
“In order to address this, FBC Re expanded retrocession coverage to manage increased claims and conducted client training to enhance treaty utilisation and underwriting risk assessment,” he said.
Kufazvinei said the company experienced significant premium growth in key segments, including Fire, Agriculture and Marine insurance.
The introduction of an agriculture retrocession program, he said, had strengthened FBC Re’s ability to underwrite more business in this sector.
He added that the company plans to expand further by participating in other crop programs and at the same time management remains focused on strict cost controls amid economic challenges while maintaining a disciplined underwriting strategy.
In Botswana, operations performed strongly, supported by a US$2 million capital injection in 2024, to boost underwriting capacity.
Kufazvinei said business profitability and growth remain on track, reflecting the group’s success in penetrating markets and increasing market share in Southern Africa.
