adminAs a consequence IPEC in a statement issued yesterday said SFG should cease operating with immediate effect.
“The Insurance and Pension Commission hereby advises all stakeholders that SFG Insurance Company has been directed to stop writing business with immediate effect. This directive follows an investigation which established that SFG was insolvent and the shareholders failed to recapitalise the company,” said the Commission.
The commission also froze SFG’s assets in terms of Section 67(3b) of the Insurance Act in order to ensure an orderly exit from the market.
“As investigations into the operations of SFG Insurance company are continuing and to ensure an orderly exit of the insurer from the market, the Commission has, in terms of Section 67(3b) of the Insurance Act (Chapter 24:07), from all the assets of SFG Insurance Company (Private) Limited and SFG Holdings Private Limited,” said IPEC.
The company had other branches in Mutare, Bulawayo, Gweru and Masvingo, which IPEC said had been closed save for the head office, which was winding up business.
Last year IPEC hiked the minimum capital threshold for insurance companies from US$300 000 to US$3 million.
The exit of SFG Insurance, which had been operating for more than 14 years, is a reflection of the existing tight liquidity situation in the country.
SFG Holdings is also a shareholder in other insurance companies including Baobab Reinsurance Company, NICO Holdings Limited, Navistar Insurance Brokers and Special Automobile Underwriters of Zimbabwe (Pvt) Limited, the underwriting management agent of SFG Insurance Company. – Business Reporter/New Ziana.
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