LIVINGSTONE MARUFU
Investment holding company, ZIMRE Holdings Limited (ZHL), is planning to strengthen its regional operations so it can seize new opportunities, Business Times can report.
The development was confirmed by the group CEO, Stanley Kudenga, who stated that ZHL would first focus on bolstering its operations in Mozambique.
He said ZHL has since received regulatory approvals to recapitalise Emeritus Re Mozambique.
In addition to Mozambique operationsa, ZHLlso has regional operations in units Malawi, Zambia and Botswana.
“We want to go regional big time which is why we are taking some of the assets and capital out of Zimbabwe into the region.
“The first port of call, in terms of strengthening our regional operation, is Mozambique because of the oil and gas that are going to be rolled out there. There are some exciting prospects there,” Kudenga said.
It comes after ZHL recently attained approval to integrate its Botswana operations into Emeritus International.
According to Kudenga, the regional operations continue to be strategic investments and a buffer against a volatile business operating environment in Zimbabwe.
In its trading update for the five months to May 31, 2023, regional reinsurance operations contributed 54% to its total gross premium written and 36% to total income.
With a 48% performance contribution, Emeritus Malawi had a significant impact on the region.
Despite being the best performer, ZHL also wants to improve operations in Malawi.
“We also need to upgrade and strengthen other operations especially Malawi as it has always been the best. We have a stronghold in Malawi and we want to strengthen that,” Kudenga said.
The life and pension cluster contributed 31% of the group’s overall revenue during the period under review, while local insurance and reinsurance contributed 23%.
“The growth in the life and pension cluster was driven by individual life premiums through the success of the Vaka Yako product.
While reinsurance experienced a 51% improvement, ZHL’s local reinsurance operations during the period also saw an improvement in claims experience, which was down 49% from 2022.
