Online Reporter
Ivan Zhakata
Herald Correspondent
A consortium of nine insurance companies led by Alliance Insurance Company (Private) Limited has paid US$4 million plus interest and costs to Paramount Exports (Private) Limited, days after the High Court issued a writ of execution authorising the attachment of movable property over non-payment of a settlement agreement arising from a fire-related claim.
The payment, which was received on Monday, April 13, 2026, came five days after the expiry of the deadline in a court-registered settlement agreement and three days after the High Court issued the writ of execution on Friday, April 10 2026.
The writ had empowered the Sheriff of the High Court to attach and dispose of Alliance’s movable assets to recover the outstanding debt, including interest and legal costs, following Alliance’s failure to comply with a settlement agreement endorsed by the court in March.
Paramount Exports confirmed receipt of the late payment, although the company expressed concern over delays in the settlement of what it described as a long-running and fully substantiated insurance claim arising from a catastrophic warehouse fire in December 2023.
Paramount director Mr Jeremy Youmans said the payment only came after sustained legal pressure, despite earlier assurances that funds were being mobilised.
“It is very frustrating. We were first approached in December last year to advise that they would be paying around US$4 million of the arbitral award of US$11,7 million plus interest and costs,” he said.
“It was even confirmed that the reinsurers were mobilising the monies, but it was only when the High Court set down a hearing on the partial arbitral award that Alliance approached us to enter into a settlement agreement.”
Mr Youmans said the agreement was subsequently registered at the High Court on March 23, 2026, giving the insurer 10 working days to pay, a deadline which expired on April 8, 2026.
“The insurers were given 10 working days, which they failed to meet. This is a terrible state of affairs given that they cannot even pay one third of the amount awarded in arbitration,” he said.
Mr Youmans said the delay has heightened concerns over the outstanding balance of the arbitral award, which totals approximately US$11,7 million, as well as additional claims relating to reinstatement of the destroyed warehouse, business interruption losses, interest and costs.
Alliance Insurance is the lead insurer on the policy, which was substantially syndicated to eight reinsurers, namely Emeritus, First Mutual, FBC, ZB, Tropical, Grand, ZEP and WAICA.
The underlying dispute stemmed from a fire that destroyed Paramount Exports’ three-storey, 8 000 square metre warehouse in December 2023, together with stock valued in excess of US$11 million.
Alliance accepted liability in January 2024 and initially undertook to reinstate the damaged structure, a position later endorsed by the High Court, which ordered the insurer to proceed with reconstruction within six months.
The matter later proceeded to arbitration, where a partial award in August 2025 ordered immediate payment of US$4 million as the undisputed portion of the claim, followed by a final award in December 2025 in favour of Paramount for approximately US$11,7 million plus interest.
Alliance has previously challenged aspects of the arbitral rulings in the High Court, arguing that full payment would be contrary to public policy and could have wider implications for the stability of the insurance sector.
Despite the latest payment, legal proceedings relating to the remainder of the award and reinstatement obligations are expected to continue.
