CBZ invests US$500k in insuranace broking and risk advisory

CBZ invests US$500 000 in insuranace broking and risk advisory to increase profits

ZIMBABWE Stock Exchange listed, CBZ Holdings has invested US$500 000 in insurance broking and risk advisory services that are expected to boost the group’s earnings this year.

The risk advisory services branch which was launched last week would complement already existing CBZ’s strategic business units (SBU) that include a Building Society, an Asset Management Company, CBZ insurance and CBZ life.

Group chief executive officer, Never Nyemudzo said the new SBU would give the bank the much-needed impetus in diversifying the group’s earnings.

“With the non-banking subsidiaries’ contribution to the bottom line already at 18 percent, against a long term budget of 20 percent, we believe the CBZ Risk Advisory Services will significantly aid the Group’s drive to diversify its earnings mix,” said Nyemudzo.

The risk advisory unit will run a three-tier system of insurance broking that includes Short Term Insurance Broking and Risk Advisory, Group’s employee benefits and Pensions Consultancy and Individual Life Financial Planning Services.

It has been capitalised to the tune of US$500 000 against a regulatory minimum of US$100 000 and as an independent insurance broke it would transact with different local, international companies, according to Nyemudzo.

Riding on the success of CBZ Life and CBZ Insurance that is ranked among top three short term insures in terms of profitability, Nyemudzo said launching the risk advisory was timely since the bank has already existing clients.

“A closer look at the dynamics in the insurance sector, in particular and the evolving economy in general, naturally calls for a further strengthening of our insurance portfolio through investment in infrastructure that supports the distribution channels product development and customer interface,” Nyemudzo said.

CBZ risk advisory is licensed and regulated by the Insurance and Pensions Commission (IPEC).

“We believe that the incorporation of CBZ Risk Advisory marks continuation of the group’s successful portfolio earnings and diversification strategy,” said Nyemudzo.