On A Date with ZHL
| Dating is a critical stage to any investor considering to take a position on any asset class even shares. #1. History, 1983, an Act of Parliament enacts the Zimbabwe Reinsurance Corporation Act (24:17) The purpose of the act was to, • Locatization of insurance through ownership • Reduce foreign currency outflows by reinsuring. • Wealth creation. 1984, the Act leds to the formation of ZimRe with seed capital from Government of Zimbabwe (GOZ). 1985, ZimRe establish the Zimbabwe Insurance Brokers (ZIB), 3 years later acquires Legal & General now Fidelity. 1988, ZimRe introduce non life business. The non life business is brought about by the acquisition of National Employment Mutual which is now National Insurance Company of Zimbabwe (NICOZ). 1996, Diamond Insurance is acquired which is later merged to form NicozDiamond now owned by First Mutual. 1999, ZimRe established in Zambia and 3 years prior in Malawi. Listing on the Zimbabwe Stock Exchange (ZSE) and the ZimRe Act is repealed. 2002, ZimRe restructure its business into a holding company Zimre Holdings (ZHL). 2003, ZHL establish Zimre Property Investments to enhance liquidity and list it on the ZSE 3 years later. Prior a subsidiary Fidelity Life Assurance (FLA) had been listed on the ZSE. 2009, Emeritus International Reinsurance is formed domiciled in Botswana. A significant stake is acquired in an agro-industrial business, CFI Holdings. 2017, NicozDiamond sold off and a controlling interest in Credsure is bought. 2018, Rebranding of all the reinsurance operations under the Emeritus Reinsurance brand. #2. Operations, ZHL is a diversified holding company with core competencies in, • Reinsurance• Insurance• Property The company has operations in 5 countries in the SADC region namely, ZimbabweMozambiqueMalawiBotswanaZambia #3. Business Units A total of 5 units are operated by ZHL which are, Emeritus ReinsuranceFidelity Life AssuranceZimre Property InvestmentsCredsureZimre Capital Credsure A credit and short term insurance products provider. Zimre Property Investments (ZPI) Offers property management services from design Operates a number of properties which include, Nicoz House A 194 unit building in Bulawayo for student accommodation. Zimre Lodge Ideal for self catering whilst in Kariba. Sawanga Mall, Victoria Falls 5000+ sqm single storey property with 23 units and a service station. The units house retail shops, banks, speciality shops and offices. Baobab MV Houseboat A luxury cruiser with 4 ensuite cabins and a fully equipped kitchen. Emeritus Reinsurance A business that strives to be a leader in reinsurance and risk management. Present in Zimbabwe, Zambia, Botswana, Mozambique and Malawi. Reinsurance is insurance that an insurance company purchases from another insurance company. Fidelity Life Assurance (FLA) A listed entity which is majority owned by ZHL. It is in the business of, Life assuranceMedical insuranceProperty developmentActuarial servicesMicrofinance Zimre Capital It is positioned to create wealth via Investment #4. Customers, Tenants, those renting its buildings such as PicknPay NUST students Policyholders, develops insurance policies for individuals and institutions. Tourists, with exposure to tourism through properties in Kariba. Farmers, interests in CFI #5. Competitors, ZHL markets are highly competitive though it had support from GOZ at its onset. The competitors are local, regional and international which include, CBZ HoldingsFirst Mutual HoldingsOld MutualMashonaland HoldingsFBC HoldingsMasawara Holdings #6. Management Stanley Kudenga – Group CEO and Executive Director An astute Investment banker with 15+ years of delivering tangible results 2006, FBC Reinsurance had negative equity but 6 years later it had the highest ROC 2013, Worked at Maisha Capital. #7. Share Price ZWL3.69 / share as at March 15. ZWL 3.76 /share at the beginning of 2022. 1.9% loss YTD. ZWL6.7bn (US$28.56) market capitalisation 3rd most traded stock on the ZSE over the past 3 months to March 11. 1,818,218,786 issued shares.#8. Shareholding, 33,81% of ZHL shares is owned by Day River Corporation an investment vehicle linked to the Rudland family. The Rudland is a wealth Zimbabwean family which made their fortunes in logistics, agriculture and financials. #9. Investor Pitch, Restructuring Businesses that are reconfiguring tend to create value. • ZHL bought back ZPI from the market. • Rebranded their reinsurance business across the region. • Positioning Credsure to increase capacity to underwrite. Majority shareholder Rudlands are known for their prowess in business consolidations with aim to create value. ZHL is a business ripe for consolidations after being removed from the targeted US sanctions. Geographical Diversity |
| Each week will be on a DATE with a company listed on the ZSE with Martin Mataga Twitter @MartinMataga. The purpose of this thread is to assist investors to have a minimum appreciation of listed firms. Disclaimer: Do not misconstrue this thread as investment advice. DATE companies before you buy their shares. |
