Madison General Insurance Company Zambia Limited (MGen) is an insurance company which underwrites short term or general insurance business following the amendment to the Insurance Legislation that came into effect on 23 December 2005.
The company commenced operations on 1st April 1992 as the first private sector composite insurance company to enter the liberalized insurance market under the name Madison Insurance Company Zambia Limited.
The company was a subsidiary of the Meridien Group, but due to the difficulties surrounding the Group which eventually led to the liquidation of Meridien International Bank Ltd (MIBL) management successfully bid to take-over the company.
Not having the necessary capital to purchase the company and desiring to reinstate market confidence in the company management invited Trans Zambezi Industries (TZI) to participate in the company as equity partners and Hollandia Re (now Hannover Re) to participate as technical partners. The two agreed to participate subject to the following conditions:
(a) That Hannover Re, being a reinsurer, would exit the company as soon as it returned to good health;
(b) That TZI, being a value investor, would exit the company as soon as shareholder value could be unlocked at the required vantage point; and
(c) That Lawrence Sikutwa and Associates Ltd. (LSA) would exercise pre-emptive rights over both the TZI and Hannover Re shares.
The shareholding was as follows:
Hannover Re 30%
In line with the agreements reached in 1995 TZI exited the company effective 1st January 2001 and Hannover Re exited the company effective 1st January 2003.
Zambia Venture Capital Fund (ZVCF) assisted management to exercise their pre-emptive rights and the shareholding was restructured as follows:
ZVCF wound up 1st January 2005 and LSA exercised their pre-emptive rights over ZVCF’s shareholding to make Madison Insurance Company a wholly owned Zambian company.
In 2005, Madison Insurance Company Limited which was wholly owned by LSA was split into two insurance companies, namely Madison General Insurance Company Zambia Limited and Madison Life Insurance Company Zambia Limited, adhering to the Insurance Act 1997 (as amended in 2005) that no insurer may transact in both general and long-term insurance business.
In 2007, Madison Financial Services Limited was formed as the group holding company with a shareholding comprising LSA – 80.5% and the International Finance Corporation (IFC) – 19.5%
In 2014, Madison Financial Services Limited was listed on the Lusaka stock exchange, MGen is 100% owned by Madison Financial Services Plc.