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No dividend for Sare shareholders

Staff Writer

THE Southern Africa Reinsurance Company Ltd (Sare) has resolved not to declare a dividend for 2003 to raise funds for recapitalisation.

tica, sans-serif”>Sare shareholders unanimously agreed at their annual general meeting held in Harare that no dividend would be declared.

“We have recommended not to declare a dividend for 2003,” Sare chairman, Johnson Mawere, said.

He said the decision had been taken mainly because Sare needed to increase its capital base to comply with new insurance adequacy requirements.

The insurance regulatory authorities recently crafted new registration requirements for all insurance companies.

The major requirement is that reinsurance companies should have a $2 billion minimum capital base.

Mawere said they had also taken the decision to enhance their underwriting capacity that has been seriously affected by hyperinflation.

He said Sare was upgrading its reinsurance programme to increase efficiency.

“In its quest to excel in service delivery, the company has set aside funds to upgrade its reinsurance programme, SICSnt, from the 2.7 module to the 3.2 module,” Mawere said.

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