Did you know? First Mutual Holdings’ footprints

22 Nov, 2019 - 00:11 0 Views

eBusiness Weekly

Fradreck Gorwe

Zimbabwe Stock Exchange- listed financial services and insurance group, First Mutual Holdings Limited (FMHL), was established from the de-mutualisation of First Mutual Life Assurance Society, effective July 1, 2003, the year of its listing.

Demutualisation, alternatively stocking or privatisation, is the process whereby a mutual organisation or society changes legal form to a joint stock company.

The demutualisation process was reached at after Statutory Actuaries’ reports, capital raising and listing processes met the requirements of Section 33 of the then Insurance Act of Zimbabwe (Chapter 24:07). The legal piece gave the society a nod to transfer insurance business to a registered company.

Main subsidiaries include First Mutual Life, First Mutual Properties, First Mutual Health, Tristar Insurance Company, First Mutual Wealth Management, First Mutual Reinsurance and FMRE Property and Casualty (Botswana).

Business entails the of provision of short-term insurance, life and funeral assurance, short-term life reinsurance, property management and development, and actuarial consultancy.

In 2004, First Mutual Life Assurance established African Reinsurance Limited as it sought initial expansion into the region.

The Botswana reinsurance business, (FMRE Property and Casualty) was granted an operating licence later in December 2009 before operations commenced in 2013.

First mutual Limited (FML) was re-branded to Africa First ReNaissance Corporation (Afre Corporation) in 2008 as part of a merger and acquisition deal between FML and ReNaissance Financial Holdings Limited (RFHL).

In 2012 the re-branded company pursued a Rights Offer whose proceeds culminated in the recapitalisation of Tristar Insurance, FMRE Life and Health, FMRE Property and Casualty Zimbabwe and FMRE Property and Casualty Botswana. Consequentially, the subsidiaries managed to meet their outstanding financial obligations.

Afre Corporation changed name to First Mutual Holdings Limited (FMHL) in 2013 having been motivated by growth in operations and profits. The name change followed resolutions of an annual general meeting on June 4, 2013.

First Mutual Health was formed after First Mutual Medical Savings Fund (introduced in 2009), was re-branded in 2014 in line with the parent’s name change to First Mutual Holdings. It progressed via strategic partnerships with various medical service providers.

On June 3, 2016, First Mutual Wealth Management was officially launched after having been licenced and commenced operations in 2014.

Also as part of the re-branding strategy, in 2017 a subsidiary, Pearl Properties Limited changed name to First Mutual Properties (FMP). FMP is separately listed on the Zimbabwe Stock Exchange (ZSE).

In 2017, FMHL acquired 80,92 percent shareholding in Nicoz Diamond Insurance Company (NDIL). Full acquisition was completed on November 20, 2017.

Nicoz Diamond, a short-term insurance solutions company was a product of the 2002 merger between National Insurance Company of Zimbabwe (Nicoz) and Diamond Insurance Company. Complete acquisition by FMHL in 2018 further meant interests in Nicoz’s associate, Diamond Seguros in Mozambique and also in United General Insurance (UGI) in Malawi where the group currently holds 38 percent shareholding.

Nicoz was set to be delisted from ZSE and merged with FML’s subsidiary, Tristar Insurance company Limited pursuant to conclusion of the takeover. Accordingly, it was delisted from the bourse on August 10, 2018 to open space for consolidation with Tristar Insurance. The merger was launched in May 2019, possibly to establish a competent short-term insurer in the region.

In 2019 the group harnessed a capitalisation drive to acquire full shareholding in the Mozambique business. Plans and strategies are also currently underway to capacitate the Botswana reinsurance business.

Chief executive officer Douglas Hoto had been loud on the group’s prospects and in particular the drive to penetrate the regional market further.

The group held a market Capitalisation of $ 179 782 267 and a share price of 26,05 cents as updated November 20, 2019.

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