THE High Court has issued a Writ of Execution against Alliance Insurance Company (Private) Limited over its failure to settle a multi-million-dollar claim following a devastating fire that razed a Paramount Exports warehouse three years ago.
The writ, issued on Friday, April 10, 2026, allows for the attachment of the insurer’s movable property after it defaulted on a court-registered settlement agreement to pay an initial $4 million to Paramount.
The legal showdown stems from a December 2023 inferno that destroyed Paramount’s three-storey, 8,000-square-metre warehouse and all stock inside. While Alliance accepted liability in early 2024, the two parties have been locked in a bitter legal warfare over the quantum of the payout.
In a move that has sent shockwaves through the financial sector, Alliance has pleaded with the courts that it cannot afford to pay the full claim, arguing that being forced to do so would be "contrary to the Public Policy of Zimbabwe" due to the "devastating effect" it would have on the entire insurance industry.
Paramount Director, Jeremy Youmans, yesterday expressed outrage at the insurer’s conduct, describing the state of the industry as a "shambles and a disgrace."
"The insurance sector is clearly in deep, deep trouble and have failed to provide for liabilities they are required to provide for," Youmans said. "Our stock was insured for $14,600,000 and premiums were paid on that amount. How can the whole insurance industry now not be able to pay a proven claim of about $11,700,000? They can’t even afford to pay $4,000,000."
The dispute escalated after an arbitrator awarded Paramount $11.7 million in December 2025 following a six-day tribunal involving over 1,800 documents. Alliance challenged the award on the final day of the 90-day window allowed for appeals.
However, in March 2026, during a High Court hearing regarding a "Partial Award," Alliance approached Paramount and signed a settlement agreement to pay $4 million plus interest and legal costs within 10 working days. The insurer failed to meet this deadline, prompting the High Court to issue the Writ of Execution.
The policy was "sold" onto eight re-insurers, including local giants Emeritus Re, First Mutual Re, FBC Re, ZB Re, Tropical Re, Grand Re, and regional players ZEP Re and WAICA Re. Despite reports that at least one major re-insurer had been asked to mobilise funds, Paramount says no payment has been received.
Youmans warned that the crisis undermines Zimbabwe’s "Open for Business" mantra.
"How can we entice investors to come when we can’t even ensure that they can protect their assets? The monies that were supposed to be accumulated to cover claims appear to have been squandered," he alleged.
The Paramount director also took aim at the Insurance and Pensions Commission (IPEC), claiming the regulator has failed to act despite being notified of the insurer's "impunity."
"Our brokers were told by IPEC that Alliance had been summoned and told to honour the Final Arbitral Award and not appeal it. Obviously, they ignored that," Youmans said.
The fallout has taken a heavy toll on Paramount, which has seen its workforce drop to 2,000 employees from a projected 3,000. No work has begun on reinstating the destroyed building, which the High Court previously ordered Alliance to rebuild within six months.
Alliance Insurance officials could not be reached for comment at the time of going to print.