ZIMRE Holdings Limited (ZHL) has combined its two Botswana reinsurance businesses after changes to the law enabled it to underwrite domestic business.
The two units, Emeritus Reinsurance Botswana and Emeritus Reinsurance International, have been combined under the flagship of EmeritusRe International.
This comes as recent changes in law now allow International Financial Condition Standard (IFCS) businesses to underwrite domestic business.
ZHL is the majority shareholder in Emeritus International with a stake of over 50% and the ownership structure allows ZHL to exert significant influence over the operations and strategic direction of the company.
Emeritus International Reinsurance Company was formed in Botswana in 2010 as an IFCS company and as the holding company for all the group’s reinsurance companies outside Zimbabwe.
Speaking at the amalgamation ceremony in Botswana recently, Emeritus International managing director Patience Marwiro said as an IFCS company, the law barred it from writing domestic business in Botswana.
Hence, she said there was need for the formation of First Reinsurance Company, later renamed Emeritus Reinsurance Company in 2018.
“Recent changes in the law have allowed the IFCS companies to write domestic business. There is, therefore, no need for the two separate entities in Botswana, hence the recent amalgamation which takes effect on January 1, 2024,” Marwiro said.
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“The operational company in Botswana will be Emeritus International, a holding company with subsidiaries in Malawi, Zambia and Mozambique, plus an investment footprint in Kenya, Uganda and Eswatini.”
Marwiro added that the amalgamation signified a new chapter in the group’s journey, a new chapter as the strategic move allowed it to underwrite more business, explore new product offerings and enhance its market presence.
“Rest assured, this amalgamation will not disrupt our operations. Instead, it will fortify our capabilities and offerings. What Botswana and our wider clientele should expect from Emeritus Reinsurance is an even more robust and innovative approach to meeting your reinsurance needs,” she said.
The unbundling exercise of the ZHL group enabled the reinsurance arm to thrive in various countries as Baobab (Zim), FirstRe, MozRe, Malawi Re and ZamRe.
The company rebranded the reinsurance arm to the mono brand Emeritus Reinsurance in 2018.
“Our strategic partnerships across African markets have bestowed upon us a unique understanding of diverse landscapes in our chosen markets,” ZHL group chief executive officer Stanley Kudenga said.
“With our recent amalgamation with Emeritus International Reinsurance Company Limited, our balance sheet has grown, providing us with the resources to not only continue but to exceed prior expectations. What this means to our valued clientele is that we are better equipped to meet your reinsurance needs.”