Moz gets first reinsurance firm

MAPUTO – Mozambique has cleared the way for its first reinsurance company to begin operations as part of an effort to beef up competition and cut foreign exchange costs in the insurance sector, its foreign minister said yesterday.

Finance Minister Manuel Chang told Reuters that Zimre Mocambique’s entry into the market was a sign of the growing importance of insurance and reinsurance in Mozambique, whose economy is one of the fastest growing in southern Africa. “This will improve the Mozambican insurance sector, and this is also an important and indispensable economic function of insurance now, due to the interdependence and complimentary nature of economic activities,” Chang said.Zimre Holdings of Zimbabwe has a 51-per cent stake in Zimre Mocambique through a subsidiary, with the remainder held by Mozambique’s government holding company, its state insurance company and Nigeria’s Continental Reinsurance, Chang said.Mozambique’s government, which once had a monopoly on insurance and reinsurance, has embarked on a sweeping reform of its financial sector and has said it wants more local and foreign firms to offer insurance and reinsurance services.The insurance industry in the country has been growing at an average rate of 15 per cent per year since 2002 and was worth an estimated US$58,5 million in 2006, according to the government.Chang said the creation of a locally based reinsurance company also would minimise the foreign exchange costs that have resulted from the payment of premiums to reinsurance companies outside the country.Nampa-Reuters”This will improve the Mozambican insurance sector, and this is also an important and indispensable economic function of insurance now, due to the interdependence and complimentary nature of economic activities,” Chang said.Zimre Holdings of Zimbabwe has a 51-per cent stake in Zimre Mocambique through a subsidiary, with the remainder held by Mozambique’s government holding company, its state insurance company and Nigeria’s Continental Reinsurance, Chang said.Mozambique’s government, which once had a monopoly on insurance and reinsurance, has embarked on a sweeping reform of its financial sector and has said it wants more local and foreign firms to offer insurance and reinsurance services.The insurance industry in the country has been growing at an average rate of 15 per cent per year since 2002 and was worth an estimated US$58,5 million in 2006, according to the government.Chang said the creation of a locally based reinsurance company also would minimise the foreign exchange costs that have resulted from the payment of premiums to reinsurance companies outside the country.Nampa-Reuters