Not a good outing for insurers on Thursday
HARARE, Trading on the Zimbabwe Stock Exchange (ZSE) was characterized by thin volumes as activity remained low. Old Mutual which was the only insurer to trade was flat at 571c ahead of its annual general meeting this afternoon.
Only 300 Old Mutual shares exchanged hands. Other insurers ZHL, FMHL, Fidelity and Nicozdiamond shares witnessed no activity.
Only recently, Nicozdiamond announced that it had received notification by shareholder FMHL of intent to buy out minorities. This means Nicozdiamond is now moving closer to a de-listing from the ZSE.
Turnover closed at $755,056 with decent trades in Delta, PPC and Simbisa. Cement maker PPC and Innscor both closed at $1.0500 after adding $0.0689 and $0.0400 respectively. Delta improved further by $0.0210 to close at $2.0074, Simbisa was up by $0.0158 to $0.4428 and Padenga was $0.0031 firmer at $0.4550.
CAFCA retreated by $0.0500 to settle at $0.5500, Econet slipped a marginal $0.0016 to settle at $0.8982 and Willdale shed $0.0010 to close at $0.0050.
Meanwhile, the All Share Index firmed 0.64%s to close at 98.12 on the back of scattered gains across. The Industrial Index added 2.07 points while the Top Ten Index closed 0.82 points up. The Mining Index closed flat with no activity in the subsector.
Zimnat unveils trade credit insurance unit
HARARE, INSURER, Zimnat, has established a specialist division offering trade credit insurance to cover the risk of payment default that a trader supplying goods on credit faces.
Trade credit insurance protects traders who supply goods or services on credit against the risk of payment default.
Zimnat Trade Credit, Bonds and Guarantees Division, The General Manager of Shepherd Tembo said the division hoped to facilitate exports through the trade credit insurance it offered.
“The division expects to promote and facilitate international trade through export trade credit insurance, which will give local companies the confidence to export to different international markets, knowing that the risk of non-payment is offset by the insurance cover they have.
“Because Zimnat will be taking over that risk, it obviously has to undertake due diligence and thoroughly vet the companies that are being supplied with goods on credit. That means that the company taking out the insurance policy has the added benefit of a free vetting service. Often such vetting, particularly when it is of a
company abroad, is costly,” he said.
Tembo added that the insurance would also be useful to exporters seeking a bank loan to finance their exports.
He pointed out that where a bank loan was involved, the insurance provided the bank too with some protection.
“One of the barriers there had been to the growth of companies’ operations and the country’s economic development had been lack of access to credit,” he said.
Tembo said the new division intended to remodel the way trade credit insurance and surety ship are transacted in Zimbabwe through tailoring what otherwise would be generic products to suit particular circumstances in order to facilitate trade and unlock value.
Domestic Credit Insurance is available to local suppliers to cover the risk of non-payment when they offer trade credit to local companies.
Export Credit Insurance covers the risk of non-payment when exporters offer trade credit to foreign buyers.