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An assessment of the business value of reinsurence as a capital management tool by Zimbabwean short-term insurence campanies

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dc.contributor.author Mungaraza, Ushe
dc.date.accessioned 2017-06-20T12:21:07Z
dc.date.available 2017-06-20T12:21:07Z
dc.date.issued 2017-05
dc.identifier.citation Mungaraza, U. (2013). An assessment of the business value of reinsurence as a capital management tool by Zimbabwean short-term insurence campanies (Unpublished Masters thesis). University of Zimbabwe. en_US
dc.identifier.uri http://hdl.handle.net/10646/3279
dc.description.abstract The research sought to assess the business value of reinsurance as a capital management tool by Zimbabwean Short-Term Insurance Companies. The world over, reinsurance has evolved from being a mere risk management tool, to an integrated capital management tool allowing insurance companies to literally underwrite insurance business on the strength of the balance sheets of their reinsurers. The period following dollarization saw the insurance industry regulator, IPEC raising capital levels three times, forcing many companies to close down as they could not meet the minimum capital requirements and were trading below regulatory solvency ratios. Hence the research sought to assess the critical role of reinsurance in the capital structure of insurance companies. The impact of reinsurance on shareholder return profile was also assessed together with the reinsurance demand variables. The research found out that reinsurance was a key capital management tool that enhanced business value through stabilizing earnings, reducing transaction costs, reducing potential financial distress costs and easing cash flows. While the results demonstrated reinsurance formed an integral part of insurer capital structure, primary data the results were not conclusive as to the optimal capital structure. This was further supported by secondary data regression results where reinsurance, the main research independent variable was shown to be negatively correlated with shareholder value. This opens up an area for further study regarding the optima mix of reinsurance and other forms of capital. en_US
dc.language.iso en_ZW en_US
dc.subject Reinsurance en_US
dc.subject Capital management tool en_US
dc.subject Risk management tool en_US
dc.subject Insurance companies en_US
dc.subject Short- term insurance companies en_US
dc.title An assessment of the business value of reinsurence as a capital management tool by Zimbabwean short-term insurence campanies en_US
dc.contributor.registrationnumber R113085H en_US
thesis.degree.advisor Mudala, Rashid
thesis.degree.country Zimbabwe en_US
thesis.degree.discipline Graduate School of Management en_US
thesis.degree.faculty Faculty of Commerce en_US
thesis.degree.grantor University of Zimbabwe en_US
thesis.degree.grantoremail specialcol@uzlib.uz.ac.zw
thesis.degree.level MSc en_US
thesis.degree.name Master of Business Administration en_US
thesis.degree.thesistype Thesis en_US
dc.date.defense 2013


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