TA Holdings is awaiting regulatory approval as it pursues plans to set up a reinsurance arm.
Plans to establish the
business unit have reached an advanced stage with TA having made a provision for the statutory requirements to operate the business of reinsurance in the country.
Current statutory requirements to operate a reinsurance business require $2 billion but government has proposed that the fee be adjusted to $30 billion.
TA has earmarked the second half of the year for inception of operations of the reinsurance business.
TA Holdings finance director, Bothwell Mujeka, confirmed plans to enter the reinsurance sector.
“We are adding a reinsurance concern to the TA group and we expect the operations of the business to start in the second half of the year,” Mujeka said.
The finance executive said TA was not acquiring the business but had established the unit within its current business structures.
“We are not acquiring it but what we have done is establish it from within our current group,” said Mujeka.
He said the reinsurance concern will also add value to the current group’s assets while at the same time adding value to its shareholders.
“We are an investment company and it is our job to create value for the group and the shareholder, which the reinsurance business will rightly do,” Mujeka said.
On whether TA will also establish external reinsurance businesses in the region where it currently has operations, director of operations Don MacDevitt remained tight-lipped.
“As we rightly said, we are an investment company in the business of adding value, at the moment I cannot answer that,” MacDevitt said.
“At the moment we cannot say much about our plans to venture into the reinsurance sector as there are factors and regulations to be followed before we give out more details,” said MacDevitt.
He said they had put on ice plans to venture into the mining sector but had not ruled out the move.
“We have put on hold our plans to venture into the mining sector but that does not mean we have ruled it out. We are an investment company in the business to add value to our shareholders,” Mujeka said.