HomeBusiness DigestInsurance survey: Nyaradzo rules the roost

Insurance survey: Nyaradzo rules the roost

THE Zimbabwe Independent last month relaunched the insurance survey and magazine after a 10-year break. The first edition of the Zimbabwe Independent 2021 Insurance Survey and Magazine was first launched in 2007 and ran annually until 2011.

The survey, sponsored by the National Social Security Authority (Nssa), relaunched under the theme ‘Thriving In a New Business Environment’. The Independent partnered Mark & Associates Consulting Group as research consultants.

Below is the list of winners:

Overall Insurance Company of the year

Nyaradzo Life Assurance Company

Runners-up

Doves Life Assurance

Old Mutual Life Assurance Company

In the life assurance business, Nyaradzo is a relatively new entrant but has taken the market by storm. The Q1 2021 latest Insurance and Pensions Commission (Ipec) Report indicates that it commands a market share of 60,82% by Gross Premium Written (GPW). Nyaradzo continues to offer market-relevant products in the space through its funeral assurance products.

It should be noted that funeral assurance products have remained popular over life assurance products in the Zimbabwean insurance markets, contributing 85,02% of the total Gross Premium Written for Q1 2021.

Based on our criteria, the runners up were Doves Life Assurance and Old Mutual Life Assurance Company. Special attention was also taken in terms of identifying companies that are offering market-relevant insurance products.

Best listed Insurance Group

Old Mutual Zimbabwe Limited

Runners-up

First Mutual Holdings Limited

ZIMRE Holdings Limited (ZHL)

Old Mutual Zimbabwe (OMZIL) has established a strong franchise that dominates in Zimbabwe.  The group has been restructured into a simpler and more optimal cluster of three core Strategic Business Units encompassing Insurance, Wealth Management and Banking.

The business has been very strategic in allocating capital given that it has been recalibrating its portfolio from low yield to high yield and strategic sub-sectors.

For an example, moving from CBD office space (occupancies of below 60%) to suburban office parks (occupancies of c95%). Old Mutual also sold Corner House to fund its portfolio recalibration and opened new suburban offices along Borrowdale Road.

In response to the growing needs of Small and Medium Enterprises (SMEs) in Zimbabwe, the group set up a new SME market in the CBD, which is a two storey SME market building with a structured steel bridge between the existing Eastgate Mall and the SME market.

In 2018, OMZIL acquired land in Victoria Falls which allows the group to leverage off Victoria Falls’ prime tourist destination status in Sub Saharan Africa (SSA) as it plans futuredevelopments in the resort town.

In addition, the group acquired 27 hectares of land in Ngezi in line with its efforts to diversify the property portfolio geographically.Old Mutual Zimbabwe Limited also upholds strong corporate governance and investor relations standards on Zimbabwean capital markets.

Based on our criteria, the runners-up were First Mutual Holdings Limited and Zimre Holdings Limited (ZHL). The rating system also placed some emphasis on the openness of management teams and investor engagement practices employed by the listed company.

Short Term Insurance Company of the year

Old Mutual Insurance Company (Pvt) Ltd

Runners-up

Nicoz Diamond Insurance Limited

Zimnat Lion Insurance Company Limited

The winner on the short term insurance side is the company that scored very well on a significant number of measures such as yields and the pure insurance metrics.Old Mutual Insurance Company sells short term insurance products, including motor insurance, property insurance and bonds and guarantees.

The business registered strong growth in GWP and NWP, well above 700% in FY 2020 financial year. In additions, collections were good given Debtors to Total Assets ratio of 4%, compared to a sector average of about 30%.

Investment returns were also solid given an investment income to earned premium ratio of 137%. All in all, Old Mutual Insurance company outperformed most of the short term insurance companies, in terms of pure insurance metrics.

Based on the Q1 2021 Ipec Report, Old Mutual is a market leader in terms of Gross Premium Written. In terms of total assets, Old Mutual, Nicoz Diamond and Econet were the market leaders with a combined market share of 40,68%.

Based on our criteria, the runners up were Nicoz Diamond Insurance Limited and Zimnat Lion Insurance Company Limited.

Life Assurance Company of the year

Doves Life Assurance

Runners-up

Econet Life (Pvt) Ltd

First Mutual Life Assurance Company

In terms of pure insurance metrics, Doves Life outperformed most of its peers. Worth noting are the high growth rates in NWP and GWP, low net commission ratio of 7% and next expense ratio of 38%. In addition, the business still maintains a solid market share. Based on the Q1 2021 Ipec Report, Doves has a market share of 12,75% in terms of Gross Premium Written.

Based on our criteria, the runners-up were Econet Life (Pvt) Ltd and First Mutual Life Assurance Company.

Funeral Assurance Company of the year

Moonlight Provident Associates (Pvt) Ltd trading as Moonlight Funeral Assurance and Services

Amongst the pure funeral assurance players, Moonlight Provident Associates dominates the space with a market shareof 58,83% despite stiff competition from some of the emerging players. The business is also compliant in terms of the regulatory minimum capital requirement of ZW$62,50 million (US$730 000).

Short Term Reinsurance Company of the year-

ZB Reinsurance Limited

Runners-up

Grand Reinsurance Company

Emeritus Reinsurance

ZB Reinsurance Limited has established a strong franchise in the reinsurance space. The company outperformed its peers it terms of business performance, asset quality and yields.  Based on the Q1 2021 IPEC Report, market leaders in terms of GPW were Zep Re, ZB Re, Grand Re and FBC Re.

Using our criteria for short term reinsurers, the runners up were Grand Reinsurance Company and Emeritus Reinsurance.

Reassurance Company of the year

FBC Reinsurance

Runners-up

Emeritus Reinsurance

First Mutual Reinsurance

FBC Reinsurance Limited has managed to leverage off the large asset base of the FBC Holdings group structure and maintained good positions in terms of business performance, collections and reinsurance indicators.

Based on the Q1 2021 Ipec Report, FBC Reinsurance has a 20,73% market share in terms of Gross Premium Written and a massive 79,42% in terms of Total Assets.

Based on the same criteria, the runners-up were Emeritus Reinsurance and First Mutual Reinsurance.

Micro-insurance Company of the year

Coverlink Micro-Insurance

Coverlink is the market leader in the micro-insurance space controlling 67,81% of Gross Premium Written (GPW) and 82,42% in terms of Total Assets for the quarter ended March 31, 2021.

Considering market conditions in Zimbabwe where most of the population is uninsured because of the unaffordability of traditional insurance products, micro-insurance is a relevant offering on the Zimbabwean market, given that it makes it possible for the population operating in the informal sector to afford insurance.

There were no runners-up in this category given that there are only two regulated micro insurance entities.

Best Insurance Broker

Minerva Risk Solutions

Runners-up

HRIB Insurance Brokers

CBZ Risk Advisory Services Private Limited

When evaluating the insurance broking space, distribution and market penetration is key. In Zimbabwe, there are a total of 31 insurance brokers in the market. In terms of market share, Minerva, HRIBand CBZ Risk Advisory feature as the leaders in the space.

In addition, Minerva Solution has recorded the highest level of capital positions in different quarters. Based on our criteria, the runners up were HRIB Insurance Brokers and CBZ Risk Advisory Services Private Limited.

Best Re-Insurance Broker

Pan African Reinsurance Brokers (Pvt) Ltd

Runners-up

Minerva Reinsurance

Marsh Insurance Brokers Zimbabwe (Pvt) Ltd

Distribution is also key when evaluating re-insurance brokers. In Zimbabwe, there are a total of seven reinsurance brokers. Pan African Brokers has 40% market share, followed by Minerva. The Ipec report for the quarter ended March31, 2021, shows that reinsurance brokers recorded a significant nominal increase in gross premium written.

Pan African Reinsurance Brokers (Pvt) Ltd stands out as a top performer. Based on our criteria, the runners up were Minerva Reinsurance and Marsh Insurance Brokers Zimbabwe (Pvt) Ltd

Most Innovative Insurance Company

Econet Life (Pvt) Ltd

Runners-up

Zimnat Lion Insurance Company Limited

First Mutual Life Assurance Company

Econet Life (Pvt) Ltd has managed to leverage off the technology and ecosystems developed by group companies.  It is a fact that telecom companies have been on the fore-front of a socio-economic revolution happening in Africa with mobile money allowing unbanked Africans to participate in the banking system.

Insurance appears to be the next growth frontier and Econet Life serves primarily as an aggregator and distribution channel that is also responsible for the marketing and promotion of insurance offerings.Econet customers, for example can access funeral cover and to auto-insurance on their mobile phones

Based on our criteria, the runners-up were Zimnat Lion Insurance Company Limited and First Mutual Life Assurance Company.

Achievement award (This special award was presented to an individual who has made an outstanding contribution to the success of the insurance industry through their illustrious career)

Phillip  Mataranyika

Mataranyika is co-founder and Chief Executive Officer (CEO) of the Nyaradzo Group of Companies, which was formed in March 2001 as Nyaradzo Funeral Services. Mataranyika is a graduate of the Institute of Marketing Management of South Africa.

He also holds a Master of Science Degree in Strategic Management from the Chinhoyi University of Technology. He has won many awards, which include the Business Luminary Award (2013), Leadership Award of the Year (2013), Chief Executive Officer of the Year (2010) and the National Businessperson of the Year (2010) among others.

Since 2001, Nyaradzo has evolved resulting in the creation of a combined Nyaradzo Group, which encompasses Nyaradzo Funeral Assurance Company, Nyaradzo Funeral Services and Eureka Insurance Brokers. Mataranyika has demonstrated a high level of business acumen and wizardry in this area. More recently, the group has established itself in the United Kingdom (UK).

RUTENDO MAGORIMBO

Magorimbo is the managing director for Old Mutual Life Assurance Company and has nearly two decades of experience in the financial services industry. Prior to her role as general manager, Magorimbo was the Chief Risk Officer for Old Mutual Africa with risk and compliance oversight over the 13 countries in Africa where Old Mutual has operations.

She has also held various roles within the Old Mutual Group in Zimbabwe, including Head of Strategy and Reporting and Actuarial executive for the Life business. Magorimbo holds a BSc (Honours) degree in Actuarial Mathematics and Statistics from Heriott Watt University (UK), an MBA from the University of Cape Town and is a Fellow of the Institute and Faculty of Actuaries (UK).

She has not only done well as a career-woman but has been instrumental in the group of the Old Mutual Life Assurance Company.The Old Mutual Zimbabwe Limited Insurance cluster comprises the Life Assurance business as well as General Insurance and remains the mainstay of the group, contributing approximately 70% to Profit After Tax.

  1. CEO of the Year

STANLEY KUDENGA – ZHL

Currently, Kudenga holds the position of Group Chief Executive Officer at ZimRe Holdings Ltd. Kudenga is also on the board of Fidelity Life Assurance Co. Ltd. (Zimbabwe) and Zimre Property Investments Ltd. In the past he was Managing Director at FBC Reinsurance Ltd. Heis a Chartered Accountant and holds a Master of Business Leadership from the University of South Africa (UNISA).

Kudenga has demonstrated strength in terms of strategy as well as deal structuring in the insurance space. Emeritus and CredSure have also been re-engineeredin line with the massiveconsolidationphase. The group aims to underpin growth strategies with a focus on cash generation and revenue stream diversification paired with value extraction from leveraging synergies.

By acquiring the remaining shares held by minority shareholders, ZHL has managed to take control of, and integrate Fidelity Life into its portfolio of financial services and a solid turnaround in anticipated.

Wadzanayi Phiri

Founder and CEO of Coronation Solutions, a leading consulting firm providing actuarial, risk management, financial andinvestment advisory services,Phiri is a seasoned corporate leader and entrepreneur with over 18 years’ experience working in the insurance industry. She has worked in Zimbabwe, Malawi and Botswana, developing Employee Health and Benefits Solutions for both private and public companies. Phiri has been exposed to all facets of business and excelled in strategic management, operations management, business development, project management and risk management. She holds a Masters’ Degree in Business Administration, Bachelor of Business Administration and a Diploma in Insurance.

Phiri has demonstrated entrepreneurship in the insurance services and consulting space having set up a vibrant actuarial, risk management, financial and investment advisory services. It should be highlighted that one important aspect in the insurance space is the need for technical assistance. Enhanced technical capacity amongst insurance players is critical for the growth of the sector at large and this has been the major focus of Coronation Solutions.

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