HARARE- Nyaradzo Group, the third top life assurer in Zimbabwe, is expanding its wings into a fully fledged financial services group after adding asset management services to its portfolio of operations.
Asset Management is a form of investment management where professionals undertake to manage funds from clients through tailor-made asset classes or a combination of these.
The asset classes include equities, which are shares traded on the stock exchange (ZSE) or non-listed equities, government bonds and other securities such as TBs, money market instruments offered mainly by banks, property investments among others.
As one of the largest insurers in Zimbabwe, Nyaradzo has pooled a significant number of premiums from clients and these have largely been placed with third part asset managers over the years in order to maximise value.
Most insurers tap into their premiums base to pool funds which are then allocated as funds under management in their pursuit to maximise value from earned premium. The largest insurers in Zimbabwe are Old Mutual and First Mutual Holdings both of which have standalone asset management firms within their stable.
Another Life Assurer, Fidelity also has an asset management operation within its stable. Creating a standalone asset management firm has an added advantage of pooling private funds outside of own funds generated by the group company.
Berkshire Hathaway, one of the world’s largest investments holding companies traces its roots to insurance before it ventured into asset management and eventually an investment holdings company. When billionaire Warren Buffet bought Berkshire, the company was a rundown textile operator before diversifying.
Nyaradzo founded by Phillip Mataranyika a former Old Mutual employee, prides itself as an indigenous insurer, having started as a funeral services provider before expanding fully into life business as well as manufacturing.
EQUITY AXIS NEWS