Zambia State Insurance Corporation Ltd
The Government of the Republic of Zambia (GRZ), through the Zambia Privatisation Agency (ZPA)
wishes to introduce a Strategic Equity Partner for Zambia State Insurance Corporation Limited
(ZSIC), the country's premier insurance company. Interested potential investors may submit their
Expression of Interest to ZPA.
The Corporation
ZSIC has the broadest distribution network among all other insurance companies in Zambia. Besides
maintaining a health business relationship with insurance broking firms, the Corporation procures
business through independent contractors (agents) and branches. Currently, there are 17 branches,
district and franchise offices covering all the nine provincial centers in Zambia and some critical
districts. The Corporation was established with the view of providing low cost insurance to indigenous
Zambians. It is wholly owned by the Government of the Republic of Zambia.
The Corporation is partner to some of the world's most reputable and strongest re-insurance companies.
It is also affiliated to several international insurance organisations. Much of the insurance business
operates through treaties. Facultative arrangements apply in certain exceptional cases.
Product and services structure
There are two main trading cores that contribute to ZSIC's turnover;
the Non Life Division and the Life Division. The divisions consist of the
following services:
Non Life Division
This division operates with five departments each providing a distinct
insurance service. They are Fire Department - offering a range of covers
for fire, householder, acts of nature and related disasters for both private
and commercial customers. Accident Department - which can be categorised
as to providing cover for property, burglary, "all risks", public liability,
plate glass and employers liability. Motor Department - providing K1 billion
in premiums providing, Road Traffic Act Insurance, Full Third Party, Full
Third Party Fire and Theft and Comprehensive. Engineering Department -
providing the insurance needs of the construction industry, operators and
owners of large plant. Marine and Aviation Department - which caters for
the transportation of people, and shipping and freight of goods that could
be damaged lost or stolen in transit.
Life Division.
ZSIC is the leading provider in Zambia of Life assurance and Pension
plans. The schemes offered include endowment insurance, anticipated endowment,
whole life assurance, mortgage protection, child endowment, group life
and other policies.
ZSIC has also established an Investment and Technical Services division
to effectively manage the investment portfolio of the Corporation. The
division serves the dual purposes of maximising the return of Assets whilst
maintaining adequate liquidity; and allowing management in operating divisions
to concentrate on the core business of insurance. ZSIC has international
connections and a host of supporting departments which makes it one of
Zambia's most efficient and successful premier corporations.
Management and work force
The Corporation has a staff compliment of 372 employees and management undergoing
rigorous training programs which has seen ZSIC become a leader in Zambian business circles.
Management has continued to invest prudently in line with international corporation standards,
and the management organisation is well structured and efficient.
Key strengths
Financial Highlights
Three year financial review - General Insurance Division
All Figures are stated in K'million
Year ended 31st December
|
|
2003 |
2002 |
2001 |
| Gross Premium |
50,413
|
45,898
|
33,866
|
| Profit / (Loss) Before Tax |
8,606
|
6,980
|
4,772
|
| Insurance Funds |
20,360
|
18,283
|
13,594
|
| Net Current Assets & Liabilities |
26,538
|
7,013
|
1,363
|
Three year financial review - Life Division
|
|
2003 |
2002 |
2001 |
| Gross Premium |
17,351
|
12,684
|
35,646
|
| Net Claims |
7,863
|
7,469
|
13,466
|
| Insurance Funds |
67,915
|
19,926
|
101,248
|
| Net Current Assets |
10,574
|
504
|
26,231
|
The Corporation has embarked on the process of restructuring the Life Division which incorporates
product, staff and Balance Sheet restructuring. The process may take three to four years.
Privatisation Plan
Contact:
The Chief Executive
Zambia Privatisation Agency
Privatisation House
Nasser Road
P.O. Box 30819
LUSAKA, ZAMBIA
Fax: + 260 1 225270
Tel: + 260 1 222858, 220177, 227791
E Mail: zpa@zpa.org.zm
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