FMRE Property & Casualty Botswana, a re-insurance company last week announced a major financial boost from its parent company AFRE Corporation with the issuance of P15 million from its Rights offer total of BWP68 000 000.
AFRE corporation has group shareholder funds of US$ 50m (P400 million) and a balance sheet of over P150 m (P1,2 billion) and market capitalization of US $12 million (P96million) .
The Principal Officer, Mr. Samuel Rimai, says proceeds of the Rights Offer will enable the business, especially FMRE P&C Botswana, to effectively compete in the international markets due to a strengthened balance sheet.
“Currently the company meets the minimum statutory capital requirement and an additional injection of is going to be made before the year end. This speaks of the company’s commitment to not only provide the statutory minimum capital requirement, but to also cover the business that they are expecting to write.The business has sufficient retrocession cover to protect its balance sheet in the case of large claims,” he said in astatement.
FMRE P&C Botswana is part of AFRE Corporation a group with a rich heritage stretching over 100 years in different marks in Southern Africa. In line with its legacy, the group has committed resources to capacitate FMRE Botswana so that it also becomes a dominant player both in Botswana and the region.
The Principal Officer noted that as a part of the Group, the company has been able to leverage on the expertise within the group and its subsidiaries, especially through the actuarial consultancy company, African Actuarial Consultancy (AAC), and the already established short reinsurance company FMRE P&C Zimbabwe, as well as a property development company, Pearl Properties limited, a short term insurance company, TristarInsurance and a fully fledged training centre
“FMRE is committed to helping the nation to achieve its goals such as the National Human resource Development Strategy which stipulates that Batswana should be viable assets by any measure globally. A majority of our employees are Batswana who are being exposed to various markets within the group and will be capacitated to eventually run the operation,” concludes Rimai.