[2008-09-19]  Zimnat Lion coffers get boost
LISTED insurance concern, Zimnat Lion Insurance Company Limited’s coffers have been boosted by the benefits obtaining from its foreign currency denominated policies for Zimbabweans living in the diaspora.
The scheme, which was introduced in February this year, has raked in several millions United States dollars that have come as a timely boost to the company.
Under the scheme, Zimbabweans living in the diaspora could insure their local assets in foreign currency thereby hedging their contribution against the hyper inflationary environment in the country.
Speaking during the company’s analysts briefing recently, managing director, Mr Edwin Moyo said the money raised would help meet some of the company’s financial obligations, one of which includes the new capital requirement for insurance companies.
Zimnat Lion, a subsidiary of TA Holdings, joins a long list of local companies that have looked beyond the country’s borders in a bid to boost their coffers.
Insurance giant, NicozDiamond already owns several operations outside the country’s borders which enable it to have a healthy balance sheet.
Foreign operations for most local companies have in recent years contributed the bulk of those companies’ profits.
Most of the companies have used their regional subsidiaries to raise money for further expansion or bailing out local operations due to the scarcity of foreign currency in the country.
Source: THE CHRONICLE