Afre seeks US$10m

insisted operations were viable and the business required no less than US$10 million.
Shareholders are scheduled to meet next month for an Annual General Meeting to consider the need for capital injection.
Mr Hoto told an analyst and media briefing on Monday the group would go ahead with the rights offer to recapitalise its life assurance subsidiaries and write more business.
“We are not going to raise anything less than US$10 million. From my own assessment, we need about US$10 million,” he said..
For the full year to December 31, 2011 Afre recorded improved results backed by growth in group business, with gross premium income growing 34 percent to US$80,4 million.
Medical savings contributed 39 percent to premiums, followed by reinsurance, weighing in with 20 percent, 17 percent from employee benefits, 13 percent from life assurance and 10 percent from short-term insurance.
Net premium income for the period stood at US$67 million, up 42 percent from the previous period.
Presenting the financials, group finance director Mr Kennedy Lemani said the total income of US$88,7 million was also boosted by rental income of US$6,7 million and investment income of US$13,8 million.
He said the investment income constituted a fair value gain of US$14,5 million on investment properties, up 96 percent from the prior period.
During the period under review, the group’s total assets grew 17 percent, following a revaluation of the investment properties and growth in premium receivables from business written during the year.
Mr Lemann said the short-term insurance unit was adversely affected by challenges faced by the group last year, with gross premium written declining from US$10,6 million to US$8,3 million.
But the reinsurance businesses recorded improved performance of US$16,3 million from US$12,4 million recorded during the previous year.
Going forward, the group is targeting US$86 million for gross premium income.
Mr Hoto said there was potential to surpass targets set by the previous management at the time it was under investigation.
The previous management had projected a minimum net asset growth of 12 percent and a capital expenditure budget of US$6,6 million.
Mr Lemani said about US$2 million would be directed towards its property arm, Pearl: US$1,5 million for IT systems upgrade and about US$2 million towards upgrading its vehicle fleet.
Giving a trade update for the first quarter of the year Mr Hoto said the group managed to rake in US$22,6 million in total income, including unearned premium reserves.
Gross premium income amounted to US$20 million against a budget of US$21 million while claims and expenses were US$7,2 million, which is 12 percent better than had been budgeted for.