The Managing Director of Botswana Insurance Company (BIC), Dziki Nganunu, will leave the company in few months time, Sunday Standard has been told.
BIC’s Board of Directors this week confirmed that Nganunu’s departure is slated for September this year.
During his tenure, Nganunu established BIC as the trusted leader in the short term insurance sector in Botswana. BIC has gained an AA- (stable) claims paying credit rating, reflecting the company’s financial strength, stability, technical expertise and leading market position.
BIC’s financial strength reflected in its balance sheet as well as profitability has further been attributed to the outgoing managing director who indicates that he raised the shareholder’s equity and profit-after-tax to record levels in 2013.
Nganunu’s departure comes on the heels of the announcement that the country’s leading insurance group, Botswana Insurance Holdings Limited (BIHL), has intentions of taking over ownership of BIC.
BIHL is expected to take ownership of BIC following the notification of a possible merger between its subsidiary, BIHL Sure! and BIC. BIHL Group confirmed this week that a submission for approval was made to the Competition Authority (CA).
The Group Chief Executive Officer (CEO), Gaffer Hassam, said when BIHL Sure! was established, the company had the overarching objective to make a significant difference within the short term insurance space, adding that the principal continues to guide them today.
In exploring the most prudent way of growing stronger in the space, BIHL Sure! has identified, as the most optimal and viable way forward, a merger between the General Lines business of BIHL Sure! into the operations of industry leader, Botswana Insurance Company (BIC).
“As a group, our overall strategy at BIHL is to offer a wide range of financial services. As part of our vision to be a broad based financial services provider, Botswana Insurance Holdings Limited (BIHL) always looks at avenues to diversify and increase value for stakeholders,” said Hassam.
Through the BIHL strategy, Hassam said, they are constantly looking for new investments and a way to better utilise the capital that they hold for strategic purposes. The BIHL CEO emphasized that they believe the transaction will provide a wider product offering to their clients and superior service.
“Our valued staff, clients and investors remains our primary focus as we work towards ensuring more sustainable long term profitability and performance. Subject to the necessary approvals, we look forward to this next chapter in the story of the business,” Hassam stated.
He also pointed out that though in the preliminary stages, discussions have commenced with BIC to this effect.
\He added that the transaction is, however, noted to be dependent upon approvals from the relevant regulatory bodies including the Competition Authority (CA), Botswana Stock Exchange (BSE) and the Non-Bank Financial Institutions Regulatory Authority (NBFIRA).
