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Aon, First Mutual submit regularisation plans

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TWO insurance firms Aon Zimbabwe and First Mutual Holdings Limited (Afre) have submitted their plans to regularise their shareholding structure in line with the sectors’ laws, the insurance commission has said.

Report by Victoria Mtomba

Insurance Pension Commission (Ipec) commissioner Manett Mpofu said the Insurance Act stipulates that a shareholder should not hold more than 40% in any insurance firm.

“The Act says no shareholder should hold more than 40%. In the case of Afre NSSA (National Social Security Authority) came to the rescue and for them to shed excess shareholding, it will take some time,” Mpofu said.

“With regards to Aon, one shareholder was 40%. They are sorting out on the shareholding. We have received the unbundling papers.”
Mpofu said Aon Zimbabwe which had to regularise its shareholding and restructure its operations as per the country’s laws.

She said when the law came into  effect in 2005, Aon was in the process of unbundling, but failed due to economic challenges.  NSSA moved into Afre in 2011 to revive the company at a time it was facing corporate governance and capital challenges.

Mpofu said in the first five months of the year, the insurance and pension sector recorded a slight improvement as it relied on the performance of the economy.

“If the economy is doing well the insurance sector would do well. If things improve, things will be better, the salary is little we have seen companies failing to pay salaries on time. We are hoping that if the election is done well things should be well,” Mpofu said.

The insurance industry is on the rise spurred by the multi-currencies regime that has restored confidence in the economy.

Confidence had reached its lowest ebb during hyperinflationary era when firms failed to honour their obligations.

In 2011, total gross premiums written by direct short term insurers increased to $159 million from $117 million.

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