Q: What opportunities is the Emeritus Group targeting in the gas investments in Cabo Delgado province of Mozambique?
A: Emeritus International recognises the significant importance of the Mega oil and gas projects in Cabo Delgado, Mozambique. The Mozambique gas projects are the biggest in Africa in this decade and are a crucial development in Mozambique.
We have strategically positioned ourselves to capitalize on these projects and leverage the first-mover advantage in the Mozambique market to consolidate our market position while safeguarding these critical national assets. The projects in Cabo Delgado serve as pivotal developments in the Northern region, and Emeritus International recognizes the importance of protecting African assets and wealth by providing the requisite security.
These projects present a unique opportunity for our company to enhance its competitive capital position and actively participate in these valuable endeavors, considering their status as strategic national assets. Through implementing robust business retention strategies and adherence to relevant regulatory frameworks, such as prescribed assets investments and capital requirements to cover technical provisions, Emeritus International underscores its commitment to providing excellent service to ensure the success of these projects.
Q: How does competitive capital benefit Emeritus International?
A: Competitive capital provides numerous benefits to Emeritus International. Firstly, it strengthens our capacity to retain and attract new business, positioning us as the preferred choice for clients and partners. This is achieved by demonstrating our financial stability and ability to handle large-scale projects, such as the Mega oil and gas ventures in Mozambique.
Furthermore, competitive capital is essential in improving our credit rating, which plays a significant role in the insurance sector. A high credit rating instills trust in our stakeholders, including policyholders, reinsurers, and regulators, as it shows our ability to fulfill our financial obligations and withstand potential market fluctuations.
Maintaining competitive capital levels ensures compliance with regulatory frameworks, particularly reinsurance. Regulatory authorities impose specific investments and capital requirements, necessitating a robust capital base to cover potential risks and technical provisions. By meeting and exceeding these regulatory standards, Emeritus International demonstrates its commitment to responsible and compliant operations.
Q: What is the risk-based capital model being used for reinsurance in Botswana, and how does it influence business operations?
A: Emeritus reinsurance operates in Botswana under a risk-based capital model, directly linking the amount of business underwritten to the available capital. Consolidating companies under Emeritus International has resulted in a robust balance sheet supported by substantial capital, enabling us to write a larger volume of business. This competitive capital position is advantageous in the reinsurance sector, where size plays a significant role. Our current balance sheet thus increases our business retention and rating, crucial assets for a reinsurer.
By strengthening our balance sheet, we enhance our business retention capabilities and improve our rating as a reinsurer. These are essential assets for a reinsurer seeking to provide stability and security to its clients. This strengthened position allows us to generate increased returns for our shareholders while simultaneously adding value to the assets present in Botswana.
One notable benefit of the risk-based capital model is the potential reduction in premium flight, which refers to premiums paid outside Botswana. By having a robust capital base and expertise in reinsurance, Emeritus can retain a larger portion of premiums within the local economy. This, in turn, stimulates the local economy through increased technical knowledge transfer, the development of insurance value chains, and the creation of employment opportunities.
Q: How does the consolidation of the company impact the business?
Answer: The consolidation of our company has had a significant impact on the business operations of Emeritus International. It has allowed us to capitalize on several key advantages, such as the ability to write a larger volume of business, reduce premium flight, stimulate the local economy, enhance market confidence and perception, and increase business retention.
By consolidating our balance sheet, we have created a solid foundation that supports our underwriting capacity. This expanded capacity enables us to cater to a broader range of clients and projects, positioning us as a preferred partner in the market.
The consolidation has also brought together shared expertise and technical know-how across African markets, allowing us to offer unparalleled reinsurance solutions. Our commitment to excellence and our robust balance sheet instill confidence in our clients and stakeholders, reinforcing our reputation as a reliable and trustworthy insurance provider.
More importantly, the consolidation has had a positive impact on employment, resulting in a 40 percent increase in our workforce. This demonstrates our dedication to supporting the local economy and providing valuable job opportunities in the current economic climate.
Q: What is Emeritus’ Botswana Strategy now?
A: Emeritus International is implementing a strategy to diversify its business operations and income across various African markets. This will establish a stable and resilient financial position. The aim is to create an income ecosystem where 51% of revenue originates from the region and 49 percent from Botswana. This will attract a favorable credit rating and establish multiple sources of income outside of Botswana. This will also result in foreign currency inflows into Botswana.
To achieve this, Emeritus International is pursuing a dual approach: growing its business in Botswana while actively seeking new premium streams from the region. Since the company’s amalgamation, this strategy has yielded positive results, particularly during the treaty renewal period. Emeritus Re has been able to maintain its existing treaties with local companies and, in some cases, increase its share of the business. This is a testament to the confidence that our clients have in our services. Despite new players entering the market, Emeritus Re has managed to retain its business relationships and continue its operations.
Q: How does Emeritus International leverage its physical presence in the southern region?
A: Emeritus International recognizes the importance of being present and engaged in the local markets, especially in the Southern African region. This physical presence allows us to stay closely connected and informed about the specific dynamics and unique challenges of each country in which we operate. We believe establishing a physical presence in a country signals our commitment and dedication to the local economies. It enables us to provide tailored solutions to our clients, facilitate skills transfer, create local employment opportunities, and foster the development of technical expertise within each country. This not only benefits Emeritus International but also contributes to the growth and advancement of the local economies in which we operate.
Furthermore, having a physical presence allows us to align with the regulatory frameworks in Botswana, Zambia, Zimbabwe, and Malawi. These regulatory frameworks promote the exhaustion of local capacity before externalization of insurance contracts. Physical presence also enables us to engage in meaningful discussions and collaborations with local market players and clients. It ensures we adapt to changing market conditions, stay abreast of regulatory developments, and ensure compliance.
A great example of the benefits of physical presence is evident in managing the Mozambique projects. By having dedicated and full-time value partners operating in the same environment, Emeritus International can effectively handle the complexities and intricacies of these projects. The proximity and constant interaction facilitate seamless coordination, efficient decision-making, and the provision of expert services.
Q: What steps is Emeritus International taking to address emerging risk that is cyber risk?
A: Emeritus International recognizes the growing importance of emerging risks which include cyber risk. To adapt to this changing landscape, we are taking proactive measures to ensure that our insurance offerings and risk management strategies effectively cover and mitigate cyber risks. These measures include risk assessment and underwriting, collaboration and partnerships, and employee training and awareness.
- Risk Assessment and Underwriting: We have developed comprehensive risk assessment and underwriting procedures specifically designed to address cyber risks. This involves evaluating the cybersecurity measures and practices of potential clients, analyzing their exposure to cyber threats, and determining appropriate coverage and premiums based on the identified risks.
- Collaboration and Partnerships: Emeritus International actively collaborates with industry experts, technology providers, and cybersecurity firms to stay up to date on the latest trends, emerging threats, and risk mitigation strategies. By fostering partnerships, we gain insights into cutting-edge technologies and innovative solutions that can further enhance our ability to address cyber risks effectively.
- Employee Training and Awareness: We prioritize cybersecurity training and awareness programs for our employees to ensure they have the necessary knowledge and skills to identify and respond to cyber risks. This includes regular training sessions, workshops, and ongoing communication to promote a culture of cybersecurity awareness throughout the organization.
By taking these proactive steps, Emeritus International aims to remain at the forefront of addressing emerging risks such as cyber risk. We are committed to providing comprehensive coverage, risk management solutions, and ongoing support to help our clients navigate the complex landscape of cyber threats and protect their assets and operations in an increasingly digital world.
Q: How is Emeritus International contributing to skills development in the industry?
A: Emeritus International has experienced remarkable growth in the workforce, with a 40 percent increase in employment figures. This has provided job opportunities for individuals with diverse backgrounds and skill sets, contributing to overall employment growth in the industry. By recruiting and developing talented professionals, we strengthen our workforce and bring fresh perspectives to the organization. To support this expansion, we have launched a graduate trainee program in collaboration with renowned local academic institutions. This initiative aims to equip new graduates with the necessary skills and knowledge in insurance and reinsurance. As part of this program, we will provide comprehensive training, mentorship, and hands-on experience in various aspects of the industry. The program will equip them with the necessary skills and knowledge to excel professionally.
Emeritus International has also partnered with local institutions to train undergraduate students by offering the requisite 12 months industrial attachment as part of the skills development. The company also sponsors awards for the best performing students in the relevant faculties and programmes.
Q: What are the main pillars of Emeritus International’s strategic approach?
A: The success of the company depends on three main pillars: cash, change, and customers. The company focuses on generating and managing cash to ensure a strong financial foundation to support its daily operations and long-term growth. The company is committed to implementing transformative change in its operations to remain relevant in a rapidly evolving marketplace. Finally, the company places significant emphasis on creating and growing its customer base, recognizing that customers are the lifeblood of any successful business. By prioritizing these three pillars and staying true to its core values, Emeritus International is well-positioned for continued success in the years ahead.