Nduna told analysts and journalists in the capital this week that the group was in need of fresh capital but would not give numbers needed for the recapitalisation.
He said: “We need to recapitalise the group and we believe in size. We will definitely dilute our shareholding where we feel we need strategic partners. Everybody (business) in the family will remain in the family but our shareholding will be lower and we are looking at like minded people to partner us.”
It’s banking division—Genesis Investment Bank—will like all other banks need US$10 million by end of September.
So far, the group complied with regulatory demands on the insurance front.
“The insurance operations are compliant with minimum capitalisation levels of US$400 000 band US$300 000 for reinsurers and insurers respectively, required by the insurance and pension s commission,” said the company in a statement attached to the results.
The group posted a US$1,3 million profit before tax. But analyst say the group faces an uphill task in raising finance in this dollarised economy because smaller shareholders are not very liquid and might not follow their rights in the event of a rights issue.
Gross premium stood at US$27 million. Of the US$27,8 million, US$16 million came from foreign operations.
Management said the first half of the year had been buoyed by local operations adding that in the same period last year w3ould have contributed 10% to turnover. In the past, ZHL had begun to rely on its foreign businesses for solid earning in the face of escalating inflation at home.
The group said dollarisation brought economic stability but also wiped out the balance sheets of its insurance business.