MINERVA Risk Solutions, formerly Aon Zimbabwe, has now complied with indigenisation regulations after local investor FMI bought shares that were owned by Aon Plc, the company’s managing director has said.
Addressing journalists at a Press conference yesterday, Minerva managing director Lydia Tanyanyiwa said the Insurance Act stipulated that no shareholder should have more than 40% in any insurance entity.
“We are 100% compliant and the Competition and Tariffs Commission has already approved the transaction. We are fully licenced and the three companies are now also compliant,” she said.
Tanyanyiwa said Aon Plc owned 69,75% of Aon Zimbabwe with the balance residing with TA Holdings.
“In order to comply with Insurance and Pension Commission (IPEC) regulations, Aon Corporation sold its shareholding to London Stock Exchange-listed company Masawara and local investor FMI. TA Holdings retains its shareholding which it has held since 1976 and an employee share trust has also been registered,” Tanyanyiwa said.
Aon was suspended in January this year by IPEC for failing to comply with the sector’s regulations.
The commission also suspended its subsidiaries that include Aon Benfield, Aon Risk Services and Aon Consulting from taking new insurance and pension administration business.
Tanyanyiwa said although the company was suspended by the insurance commission for three months, it performed as expected. She could, however, not divulge the amount of money that was spent in the transaction as it was a shareholder issue.
“I am not privy to the actual details as it’s a shareholder issue,” she said.
Tanyanyiwa said Aon Plc would continue to offer technical advice to Minerva.
The company has a 30% market share in short-term insurance, 75% in the reinsurance business and 62% in the pension business, according to the latest IPEC report.
Minerva has operations in Zambia, Malawi, Tanzania and has offices in Harare and Bulawayo.