CBZ insurance units consolidation begins

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BY TAURAI MANGUDHLA
ZIMBABWE Stock Exchange-listed financial services powerhouse, CBZ Holdings (CBZH)’s recent acquisition of a 31,2% stake in First Mutual Holdings (FMH) could result in the two firms’ insurance units merging, the banking group chairman Marc Holtzman said yesterday.

He said the two insurers could share licences, reducing expenditure and capital requirements.

After the multi-million-dollar transaction announced in November, the two have been looking to leverage on their co-competencies.

In an interview with NewsDay Business on the future of the insurance business under the new structure, Holtzman said: “That’s what building on strengths means.”

He said tying up the two businesses would have a positive impact on the group’s insurance cluster, which could immediately push profits to levels that only CBZ Bank could surpass.

“In addition FMH has a wealth of experience and skills that are unmatched in the market and will be immediately unleashed to further grow the insurance book.

“There are also great opportunities to cross-sell the group’s client base with that of FMH leading to even more growth for both businesses,” the CBZ boss said in while fielding questions at the CBZH headquarters in Harare,” Holtzman added.

“Additionally there are businesses in both CBZH and FMH that don’t exist in either group like medical aid, risk advisory, funeral services to mention a few.

“The benefits of bringing these complementary businesses together are vast.”

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