SIMON MUNTEMBA writes
A MAURITIAN insurance firm, SWAN, has rebranded Zambia’s Diamond General Insurance (DGI) following the recently acquisition of the majority shareholding in the local insurance company.
In 2018, SWAN became the largest shareholder in DGI with a shareholding of more than 85 percent after injecting about $360 million.
Speaking in Lusaka on Tuesday night during the launch of the insurance new identity, SWAN’s Group chief executive officer Louis Rivalland said the Mauritian firm decided to make huge investment in Zambia because of the country’s conducive business and political environment.
Mr Rivalland said Zambia was a major part of the company’s best option in spreading investment in Sub Saharan Africa because of its unique position and good economic climate.
“Zambia is a natural choice for us given its long tradition of democracy and political stability, its strong public institutions, a free and open market and an economic environment which fosters investments,” Mr Rivalland said.
He said the SWAN would undoubtedly benefit from the existing infrastructure and human capital in Zambia to develop the sector alongside the regulator and other stakeholders.
He said that he was aware of the low insurance penetration levels in the Zambian market but that his company would help to raise that by introducing innovative products.
“Our investment in Zambia reflects our vision for the very long term. In fact, we started our operation las year in 2018 when we became the largest shareholder in the company with a shareholding of more than 85%.
“We added more capital into the business than statutorily required, upgraded the process processes and ensured that operations were compliant with the international norms adhered to by SWAN,” Mr Rivalland said.
He said the investment in Zambia was a step of faith in the economic future of Zambia.
“We have taken the right initiative at the right time, and we believe that SWAN insurance Zambia will evolve in line with the set objectives,” he said
He explained that drawing from their experience in complex risk, , especially risks namely, from Mauritius and other African jurisdictions, SWAN’s teams intend to provide the Zambian market with innovative services and financial solutions such as cyber protection.
“However, we do recognize that the challenge that goes with developing operations abroad and in Zambia is an important one, especially since our investment in Zambia now and later, is for the very long term,” he said
And SWAN Zambia Board chairman Larry Kalala said in seeking new investments in DGI with a view to address the weakness in capital and liquidity position, the shareholders’ preferred choice was for an institutional investor in financial services with a strong capital base which turned out to be the SWAN”.
Mr Kalala said the SWAN who acquired a majority stake has strengthened the company’s capital and human resource adding that above all enabled retention of staff.
He expressed conviction that SWAN’s commitment to Zambia will be fruitful in the forthcoming years to all stakeholders, and that more business opportunities would emerge soon.
Meanwhile, Mr Martin Libinga, a registrar and chief executive officer of the Zambia Pension and Insurance Authority (PIA) who graced the event congratulated Diamond for giving birth to SWAN.
Mr Libinga said it was government’s desire through its financial inclusion policy to see more insurance firm being set in Zambia with reasonable capital and offer the much needed services to Zambians.
Mr Libinga who noted with sadness that some firm were paying its client in installments said government wanted an entity that can pay claim settlements to their clients in full.
