ZHL to merge Botswana operations
TINASHE MAKICHI
Diversified financial services group, Zimre Holdings Limited (ZHL) is merging its two Botswana operations to create a single entity which will write domestic and international Business Times can report.
ZHL operates Botswana based Emeritus Re International and Emeritus Botswana.
The merging of the two units comes after changes to Botswana laws.
ZHL group chief executive officer, Stanley Kudenga, told Business Times that the company will inject US$3m into the new operation.
“We are merging two Botswana operations into one license with an additional capital injection of US$3m into the merged entity. That merged entity will now house all our regional assets and businesses,” Kudenga said.
“We had Emeritus Re International on the offshore centre writing international business and Emeritus Botswana writing mostly Botswana domestic. Now we will have one that writes both domestic and international after changes to Botswana laws allowing this,” Kudenga said.
In its financial results for the six months to June 30, total insurance income grew by 111% to ZWL$1.72bn compared to the prior year period whilst total income decreased by 32% to ZWL$2.15bn due to a 123% drop in fair value adjustments on investment properties.
“Growth in total expenses was largely attributed to inflationary pressures on operating and administration expenses and once-off restructuring costs following the successful delisting of ZIMRE Property Investments (ZPI),” ZHL chairman Ben Kumalo said.
Loss before income tax for the period under review was ZWL$524.9m compared to a profit of ZWL$2.59bn in 2020 and the loss is attributed to the impact of the actuarially determined gross change in insurance and investment contract liabilities and the impact of the net loss on monetary position.
Total assets decreased by 0.7% to ZWL$14.94bn during the period under review while total equity decreased to ZWL$6.61bn from ZWL$6.94bn as at December 31,2020 as a result of the loss incurred in the half year to June 30 2021.
Cash and cash equivalents for the period increased by 21% to ZWL$1.73bn during the period under review in line with the group strategy to generate cash for operational use and investment.
