FBC Holdings sets up offshore re-insurance unit in Mauritius

FBC Holdings sets up offshore re-insurance unit in Mauritius

Insuranec24 reporter

HARARE, FBC Holdings says is awaiting approval from the Reserve Bank of Zimbabwe (RBZ) to set up an offshore re-insurance unit in Mauritius as the group seek to address nostro and liquidity challenges obtaining in Zimbabwe which is resulting in delays on settling foreign payments.

FBC has short term and re-insurance operations in countries such as Zambia, Malawi, Kenya, Uganda and Sudan among others.

Mushayavanhu in an interview said while the Group is up to date in terms of foreign claim payments, regional players are always questioning the sustainability of such in the current environment.

“FBC is up to date and there are no outstanding payments but probably the question people would want to ask is for how long we are going to be sustainable in such an environment? The answer is we can sustain it but in the long run through moving to Mauritius where there are nostro issues,” he said.

According to Mushayavanhu, FBC is anticipating to have completed the process by the fourth quarter of this year.

“We are still awaiting approval and we hope that by end of July (this month) we will have the Central Bank’s authorization,” he said.

He added that the Group has already set ground work in Mauritius but is making little progress due to lack of the approval.

“We are looking at somewhere where there are no nostro issues and liquidity challenges. It is better to operate from Mauritius than Zimbabwe due to these issues.”

Mushayavanhu said the re-insurance unit will operate across the Globe but from Mauritius and he anticipates the unit to achieve positive outlook in the first year of operation.

Zimbabwe is currently faced with foreign currency shortage, leading to depleted nostro balances resulting in foreign payments delays.

Meanwhile, the Group’s insurance units are FBC Reinsurance Limited and Eagle Insurance Company Limited. Eagle Insurance Company Limited is in the process of being re-branded to FBC Insurance.