Harare — ZIMRE'S Mozambican subsidiary has so far written business worth over US$500 000 in the six months since it began operations.

Managing director in charge of reinsurance operations Mr Leo Huvaya said the group expected Zimre Mozambique to hit US$2 million before the end of the year, adding that the branch had been a "big hit" since it was the first reinsurance in the country.

Zimre-Mozambique was given an operating licence in July and was officially opened in November last year.

The group has a 51 percent controlling interest in the Mozambican operations while the Mozambican government has 30 percent "to encourage Mozambican participation", and a Nigerian partner, Continental, holds a 19 percent stake.

Zimre has 1 percent shareholding in Continental. Mr Huvaya said that Zimre-Malawi had solely funded the Mozambican operation. Zimre-Malawi has got a US$10 million book (asset value) "ahead in value to Zimbabwe because of the lower exchange rate".

In addition, the group also has a controlling stake in United General Insurance, which began operations in September last year. The group will continue looking at other business opportunities and is expecting to open shop in three more countries in the next two months.

Other group subsidiaries are in Zambia, Uganda, Angola and Kenya. On local operations, Mr Huvaya said Zimre has maintained its market share and would continue being a real value company as it has strategic alliances across the insurance market

Zimre has over the years consolidated its position in the reinsurance market and has had an efficient use of capital. Mr Huvaya said that they would continue employing capital to its highest use and the regional expansion provided a hedge, which would minimise losses.

Zimre Holdings' market capitalisation currently stands at $261,86 trillion at Monday's share price of $355 000.

Apart from reinsurance, the group has controlling shareholding in NicozDiamond, Fidelity Life SFG Insurance, Zimbabwe Insurance Broking, CFI Holdings and Genesis Holdings and a 25 percent stake in Eagle Insurance.

It also has interests in property investments.