IDC GETS 28% STAKE IN PRIMA RE-INSURANCE

LuSE confirms K75 m share capital increase

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BUUMBA CHIMBULU writes
@SunZambian

THE Industrial Development Corporation (IDC) now has a shareholding of 28.17 percent in Prima Reinsurance Plc following a successful capital raise in July 2020.
Prima Reinsurance now has an authorised share capital of K 75 million of which K45 million was paid up.
The capital raise was structured as a renounceable rights offer and this was underwritten by IDC an investment holding company owned by the Government.
This is according to the company’s abridged half year result posted on the Lusaka Securities Exchange (LuSE).
“We are pleased to announce that the company underwent a successful capital raise in July 2020,” the statement said.
Meanwhile, Prima Reinsurance Plc recorded growth of 20 percent in gross written premium to K30.46 million in 2020.
Prima indicated that it reported growth of 20 percent in gross written premium to K30.46 million in 2020 from K25.35 million the previous year despite the COVID-19 pandemic.
The company attributed this mainly as a result of a general increase in life, property and engineering classes of business.
“The company operated in a challenging environment with the onset of the COVID-19 pandemic, where it witnessed unprecedented decline in private sector economic activity.
“The company initiated its business continuity plan, allowing staff to continue working remotely and continue providing its services both at domestic and international levels,” it indicated.
In addition, the company saw an increase in the net earned premium by 37 percent to K12.43 million in 2020 from K9.07 million the prior year.
The company posted a profit after tax of K1.703 million for the first half of 2020 compared to a loss of K5.45 million in the first half of 2019.
The increase in the profit was attributed to a reduction in operating expenses and increase in other income arising mainly as result of the devaluation of the Kwacha against the United States dollar.
It stated that the company’s financial position remained robust with total assets increasing to K 76.62 million from K 65.24 million.
The report indicated that the net current assets position for the half year ended June 30 2020 was K33.63 million.

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