FBC Re Mauritius commence operations, as FBC Insurance GPW increases on Liberty health insurance
By Insurance24
Harare, FBC Holdings says has finalized the setting up of FBC Reinsurance Mauritius with the new unit expected to commence operations before end the first half of 2018.
The unit will be 100% owned by FBC Reinsurance Ltd. Chief executive officer John Mushayavanhu at the company’s announcement of its 2017 financials said the group has now obtained the required approvals.
“We are about to finalize the setting up of FBC Re Mauritius and before end of half year we should be up and running. The local approvals and exchange control approvals to release the capital has been obtained, thus right now we are finalizing the kyc’ s required,” he said.
With Zimbabwe currently faced with foreign currency shortages, leading to depleted nostro balances; Insurers have seen increased risk of failure to meet claims in particular foreign claims.
However, according to Mushayavanhu, 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, hence necessitated the move into Mauritius.
During the year ended December 2017, Group total income was 13% up to $105.3 mln from $93 mln. Profit before tax was 14% up to $29.3 mln from $25.7 mln in 2016 while total assets grew 17% to $712.4 mln compared to $610.1 mln in 2016.
FBC Re contributed 9% to total group income at $10.6 mln, being 11% lower than $11.9 mln in prior year with Profit before tax contribution at 5% at $1.7 mln compared to $2.3 mln which is 24% lower. Total assets amounted to $21.5 mln a 0.5% decline from $21.6 mln. The reinsurance unit was during the period adequately capitalized at $13.6 mln compared to a regulatory minimum of $7.5 mln thus leaving a buffer of $6.1 mln. FBC Re was rated A-.
On other hand, FBC Insurance contribution to group performance saw total income being 14% higher $16.6 mln, a 110% increase from $7.9 mln in prior year. Profit before tax contribution was 4% at $1.4 mln, being 7% lower than $1.5 mln in 2016. Contribution to total assets was 2% at $15 mln after increasing 23% from $12.1 mln last year. FBC Insurance gross capital was at $7.4 mln compared to regulatory of $5 mln leaving excess capital of $2.4 mln.
Mushayavanhu said FBC Insurance benefited most from the partnership with Liberty Blue of South Africa which the unit is underwriting its medical health cover.
“Last year FBC Insurance acquired to underwrite Liberty insurance from SA, as a result, gross written premium for the year has gone because of the business we writing for Liberty,” he said.
Liberty through FBC Insurance launched its Liberty Blue, a suite of health insurance products offering a comprehensive set of health insurance benefits to the staff of employer groups in Africa. The products cater for a variety of healthcare needs across a number of income categories.
