ZHL restructures portfolios

TINASHE MAKICHI

Diversified financial services group, Zimre Holdings Limited (ZHL), plans to restructure and remodel its business portfolios in line with its new culture which places ‘emphasis on sustained value creation through cash generation, customer focus, and change management’.

The development comes after the company acquired 100% shareholding of Zimre Property Investments Limited which culminated in the delisting of the company from the Zimbabwe Stock Exchange (ZSE) as well as the acquisition of majority interest in Fidelity life Assurance of Zimbabwe Limited.

“ZHL looks forward to restructuring and remodelling the business portfolios in line with its new DNA,” ZHL company secretary Ruvimbo Chidora said.

The group battled economic disruptions and a fall in aggregate demand following a spike in Covid-19 infections and deaths in the first quarter to March 31, 2021.

Chidora said that despite the challenging business environment, local operations sustained an upward business growth trajectory while the regional reinsurance operations felt the impact of the reduced business activity due to the pandemic.

According to Chidora, the Mozambique operation continues to weather the negative impact of terrorist activities in the Cabo Delgado Province which threaten the country’s growth prospects for 2021.

Overall, the group generated positive cash flows and experienced significant improvement in its bottom-line performance.

Accordingly, income grew by 33% and 619% in inflation adjusted and historical cost terms respectively.

ZHL has delayed publishing its full year financials to December 31, 2021.

Chidora promised to publish the results by May 31,   2021.

The delay, Chidora said, was caused by the Insurance and Pension Commission of Zimbabwe’s request to review the financial statements of the insurance industry, prior to publication on the ZSE.

“Despite the delayed publication, ZHL remains optimistic for sustained economic recovery as countries return to normalcy following the Covid-19 induced national lockdowns,” Chidora said.

She noted that a moderate to strong economic recovery of on average 3.1% in the Southern African region is anticipated following the easing of restrictions and opening up of economies, rollout of vaccines, government economic interventions and enhanced food security on the back of a good 2020/2021 agricultural season.

ZHL, which was established in 1983, operates subsidiaries that provide solutions for general insurance, health cover, reinsurance, life reassurance, reinsurance broking and property services for private, commercial and corporate clients in Zimbabwe and overseas.

Its insurance products range from short-term and whole-life insurance to endowment pensions, medical aid societies and motor, household and commercial insurance solutions. 

The company also has interests in producing a range of animal-drawn implements and in property management.

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