PHILLIMON MHLANGA
Listed financial services provider, FBC Holdings has deferred plans to set up an offshore reinsurance unit in Mauritius, Business Times can report.
The initial plan was to operationalise the unit in Mauritius before the end of June this year, according to FBC Holdings group chief executive officer, John Mushayavanhu. He said the reinsurance unit would operate globally but from Mauritius.
But, FBC spokesperson Priscilla Sadomba told Business Times this week that the plan had been deferred. “Not yet, when we commence the (Mauritius) operations we will notify you,” Sadomba told this newspaper. She did not give reasons for the delay.
Sadomba, however, declined to comment on whether the financial services group had been granted regulatory approvals by the Reserve Bank of Zimbabwe.
She insisted on written questions on the matter, which were sent to her on Tuesday. Sadomba had, however, not responded by the time of going to press.
Mushayavanhu said that the establishment of the reinsurance unit in Mauritius was meant to circumvent domestic foreign currency problems, which have ravaged Zimbabwe’s economy.
FBC Holdings already has shortterm and re-insurance operations in Zambia, Malawi, Kenya, Uganda and Sudan. The group’s insurance units are FBC Reinsurance and FBC Insurance Company (formerly Eagle Insurance Company Limited).
In its financial results for the six months to June 30 2018, FBC Holdings reported a strong set of results, particularly for the bank.
Interest income went up by 18,7 percent during the period under review to $38,70 million from $32,60 million recorded in the corresponding period in the prior year. This was attributed to an increase in interest earning assets, particularly loans and advances and Treasury Bills.
Interest expenses retreated by 33,5 percent to $7,74 million during the period under review from $11,63 million recorded in the same period in 2017, reflecting management’s efforts to source cheaper deposits.
The resultant net income for the first half of the year was therefore 47,7 percent higher than that recorded in the same period last year.
Net income stood at $30,97 million during the reviewed period.
