Listed financial services group, ZIMRE Holdings Limited (ZHL), looks to leverage on opportunities presented by regional markets to cushion the company against economic headwinds ravaging Zimbabwe’s economy.
Currently, ZIMRE has operations in Botswana, Mozambique, Malawi and Zambia.
“Culture change has been initiated through the adoption of the Eagle mentality which will propel the ZHL group to actively seek local and regional opportunities that create security, growth and profitability as the group repositions itself as an international player,” company secretary Ruvimbo Chidora said in a trading update.
Total income for the group grew by 193% in the period under review, driven by reinsurance and life and pensions business operations each contributing 53% and 35% respectively.
Chidora said the positive total income growth resulted from real business growth emanating from organic growth, new business acquisition, and positive investment returns from investment property and equities.
The reinsurance business segment’s positive performance of 48% was driven by new business acquisitions and high renewal rates.
Regional reinsurance subsidiaries operating in stable environments contributed 49% of the income.
She said the life and pensions business segment grew by 100% in inflation adjusted inflation terms underpinned by growth in the life assurance business.
The general insurance business segment’s gross premium written grew by 31% in inflation-adjusted terms reflecting the growth in the credit core and bonds business.
Chidora said the support from strategic partnerships in terms of broker business also saw the motor book increasing significantly during the period under review.
Total claims and expenses increased by 56% in inflation-adjusted terms.
The increase was a result of higher claims experienced from agriculture and cyclone-related claims and high operating costs recorded by local entities due to inflationary pressures currently obtaining in the economic environment.
The group recorded a profit in inflation-adjusted terms from a loss position in the prior year and continues generating positive cash flows in line with the group’s strategy of cash, customer and change mantra.