The Industrial Development Corporation has announced that it would restructure and recapitalize ZSIC General Insurance Ltd and ZSIC Life Ltd.
The announcement was made during the 45th Annual General Meeting of ZSIC Holdings Limited recently.
During the AGM, the IDC also announced that the shares in ZSIC General Insurance Ltd and ZSIC Life Ltd would be transferred from the current holding company, ZSIC Holdings Limited to the IDC, which would now directly hold the shares in the two insurance companies.
Speaking after the AGM, Acting Chief Executive Officer of the IDC, Mr Mateyo Kaluba said “We are very confident in the future of ZSIC General Insurance Ltd and ZSIC Life Ltd. These are companies with a rich heritage and we are confident they will be restored to being market leaders in both the General Insurance and Life Assurance insurance segments. This is the reason the IDC Board of Directors has decided to take direct control over the shareholding in the two insurance companies.”
“We will take all measures necessary to make the two insurance companies competitive and profitable including balance sheet restructuring, resolving legacy issues such as the statutory liabilities and injecting fresh capital,” said Mr. Kaluba
Explaining the decision by IDC to take direct control of ZSIC General Insurance Ltd and ZSIC Life Ltd, Mr Kaluba said “The current ZSIC group structure resulted in a cost structure that places an unsustainable burden on the two insurance companies.”
He added, “To address this challenge, it was found prudent to bring the two companies directly within the IDC Group of Companies. This will also allow us to recapitalize the Insurance companies as they are now directly accountable to the IDC unlike previously when they needed to go through another structure. It will also enable us to actively seek new strategic partnerships which can bring critically needed resources, expertise and technology into the two insurance companies”.
The AGM discussed various matters pertaining to the future of the ZSIC Group.
The Gross premiums had increased by 5.4% whereas the net premiums had increased by 21%.
Other positive developments included increase in investment income of 18% and a general improvement on the bottom line.
The Auditors, Grant Thornton, issued a clean opinion on the consolidated financial statements for the year 31st December, 2015.
Uko, we don’t seem to learn from past failures. They said the same things when they took over Lapgreen and Railway systems. Today thee two companies are a sorry sight with their workers striking almost every fortnight. These nationalist policies can not work in the modern dispensation of capitalism. If you look at Zanac,o their services are by far the worst in the banking industry. Let the competitive edge of competing in these industries be done by professionals expertise and not these politically appointed stooges who will bent at the whim of their masters. Imagine if Lapgreen and railway systems were here today, it would a different story altogether.
Looking for more BAILOUTS to make up for incompetent and corrupt management. Just watch this space. The first thing these people will do under the new management is give themselves HUGE salary increases, even though they are loing millions of taxpayers money!
This is the end of ZSIC if not handled carefully.Zamtel is another example.Shame on this government.
Kasama Branch has trouble me with the cancellation of the policies. why?
As a country we need to ask ourselves a simple question. Is it the business of government to do business? I say so because we are getting immersed in uncertain waters here. Does the government through IDC have the capacity to run businesses and compete favorably with the private sector? Your answer if you are capitalistic oriented, your answer is as good as mine. We were told by the late MCS (MHSRIP) that he wanted to ensure that all parastatals are listed on the LUSE. Then I was sckepticle as iam today having full knowledge of LUSE listing rules. Lets see how this takeover pans out.
This is as areult of having a head of state whose life’s record is invisible to any thinking citizen. ECL has never achieved anything commendable. It would be nearly impossible for Zambia to achieve any meaningful development in any sector because he knows nothing. This is why every other week he goes off globetrotting. He is a serious case of illegitimacy at the top.
By the Board of Directors Mr. Mateyo means Lawrence Sikutwa of Madison Insurance and Robinson Zulu of Meanwood Insurance. Now honestly how possible is it that these characters are interested in resuscitating ZSIC which is a competitor to their insurance companies. Zambians need to take interest with the operations of IDC as a STATE CAPTURE similar to Zuma’s Guptas is underway through this institution. Unless Zambians take interest in affairs of its SOEs another plunder worse than privatization is in the making.
You have nailed it! Zambians need to wake up.
Kulibe vichitika, bwelesani chabe bazungu. Kulibe kwamene tiyenda
The MMD-led PF Regime is UNIP is rebooted (Version 2.0). Mungulu economics, chipante-pante policies, coupled with suppression of anyone with an opposing / discerning view.
They never learnt that the failure of ZIMCO, INDECO, MEMACO, ZCCM led to the downfall of KK.
UNIP Govt kept borrowing from IMF, World Bank to sustain these unprofitable organizations. Even companies which had a monopoly e.g. Zambia Airways, Superloaf, Dairy Produce, ZCBC etc became loss making due to no motivation to make profits. Even if they made profits, the profits were taken to sustain other loss making companies.
The motivation to make profit is what makes companies become competitive & beneficial to the economy.
Please take time to explain to those with personal policies with ZSIC. How are they going to be considered in terms of the contributions made.
I hope the money that we contribute to you won’t go missing otherwise it will be kafwafwa
ZISC is a company that has lost direction.It is a cow that is suffering from mastitis and its failing to produce milk.I have never heard about ZISC declaring dividends to the government.It only survives on tax payers money.It is like the government is their to cover for the liabilities of the company.ZISC cannot stand on its own.Government would have just transferred all the assets of ZISC to Napsa so as to revive the institution.The company needs reorganisation and structural adjustment especially on top management.It is run by professionals who are incompetent.
How many times do we have to say this, government has “no business in business, period!”…