ZIMRE in corporate restructuring
RYAN CHIGOCHE
Diversified group, ZIMRE Holdings Limited, is restructuring operations, an exercise that will improve efficiencies.
Group CEO, Stanley Kudenga, told the company’s annual general meeting held in the capital last week the integration of sharing services across the entire group to achieve optimised business operations is currently underway.
“It [restructuring] will see a reconfigured business structure that is efficient going forward. The internal reorganisation will enhance competitive capital mainly in the region, leading to strengthened regional capacity,” Kudenga said.
“In the pipeline for Zimbabwe and the regional financial services sector are projects focused on cash generation and innovation thanks to the now established regional ecosystem.”
Kudenga said the strategy will be anchored by robust investment initiatives, continued consolidation of operations to capitalise on economies of scale while eliminating duplication of costs, and exploring strategic partnerships both locally and regionally to enhance its market presence.
In a trading update, Kudenga said ZIMRE reported a 69% revenue increase in the first five months of the year from 71% achieved in the prior comparative period.
The life and pensions and the re-insurance operations made a contribution of 46% and 39% respectively to the revenue.
Rentals income recorded a 131% increase in the first five months of the year as ZIMRE Properties Investments maintained regular rental reviews in the period.
The the local reinsurance was however adversely affected by claims in agriculture emanating from climatic change as 2021/22 was one the worst experiences.
Total claims brought forward increased by 91% compared to 43% from the same period in 2021 while that of the regional reinsurance operations increased to 36% compared to 19% in the same period last year mainly driven by floods in Malawi.
The group also announced that the restoration of the Heartland Investment was being finalised.
In the outlook Kudenga said the group will ensure business continuity anchored on technology.
