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[2008-09-25] Two insurance firms set to merge
INSURANCE giant, NicozDiamond could soon merge with Standard Fire and General in a move that is expected to eliminate duplication of roles.
NicozDiamond and Standard Fire and General are both subsidiaries of diversified group, Zimre Holdings and fall under the group’s general and short-term insurance business portfolio.
Zimre Holdings chief operating officer, Mr Solomon Tembo said they had not yet finalised on the merger but were still weighing the merits and demerits of merging and keeping the two entities separate.
He said apart from eliminating duplication, a merged entity would have a critical mass that makes it better placed to deliver value to the group.
He added that the news should not necessarily cause panic among the employees of the two entities.
"We are a large group that has subsidiaries within and in the region and so we have the capacity to absorb those displaced by the exercise," he said.
He added that if decided upon, the merger would still be subject to approval by the Competitions Commission.
NicozDiamond was formed out of the merger of Nicoz and Diamond, which was agreed on in September 2002 and implemented on January 1 2003.
Nicoz was formerly known as NEM and taken over by Zimre in 1988 and changed its name to Nicoz.
Diamond was incorporated in 1979 as Pearl General Insurance Company (Private) Limited and later changed its name to Diamond in 1994 when Pearl Assurance Plc of the United Kingdom sold its interest in Zimbabwe.
Standard Fire and General was acquired by Zimre over the past 18 months during which the group increased its stake in the company from 10 percent to over 80 percent at present.
