Zimbabwe’s FML faces investigation over asset separation law defiance
FML, the second-largest life assurance company in Zimbabwe by market share that also provides retirement, medical insurance, micro-insurance and other long-term financial security products, has also effectively defied the law on separation of insurance and pension businesses due to internal squabbles over the issue, which has led to some executives being removed.
Zimbabwe’s leading financial services conglomerate, CBZ Holdings, is in the process of taking over FMHL to build a business behemoth in the local and regional markets.
In a letter dated 8 February addressed to FML board chairperson Samuel Rushwaya, copied to FMHL chief executive Douglas Hoto, FML boss Reuben Java and FML acting principal officer Williefaston Chibaya, Ipec commissioner for insurance, pension and provident funds Grace Muradzikwa says a forensic investigation into the company’s issues has begun after it failed to comply with the asset separation policy and law.
“Reference is made to our letter of 31 December 2021, wherein the commission expressed concern over the failure by FML to adhere to the agreed timelines and the quality of submission thereof,” the letter says.
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