Harare – Listed Financial services group, Zimre Holdings Limited (ZHL) has reported a 15230% jump in profit after tax to ZWL117.6 million during the six months ended 30 June 2019 compared to ZWL0.766 million in the same period last year driven by profitability at Zimre Property Investments (ZPI), domestic insurance operations and the Group’s associates as well as positive claims experience.
The Group’s total income came in at ZWL167.1 million during the period under review compared to ZWL14.9 in the previous period, representing a growth of 1023%.
In a statement accompanying the financial results, the Group Chairperson Ben Khumalo said this growth was on account of the continued business growth in the reinsurance operations especially in the regional subsidiaries which contributed 68% of the premium written and letting of value rental space by ZPI.
ZHL is an investment company with sustainable core competencies in the insurance and property sectors with subsidiaries and associates in Zimbabwe, Botswana, Malawi, Mozambique and Zambia.
The group also underwrites business from other strategic markets on the African continent.
“Significant business growth in reinsurance also contributed positively, particularly in the Mozambican operation,” Mr Khumalo said.
“Limiting factors were however noted in the domestic environment where businesses were adversely affected by the rising operational costs in line with surging inflation and erosion of consumer disposable incomes.”
Total comprehensive income for the period scaled up 18611% to ZWL185.6 million compared to ZWL0.99 million in the previous year.
“This growth was attributed to the exchange differences on the translation of foreign operations, fair value gains on financial assets, gains on property and equipment revaluations, and share of comprehensive income of associates,” Mr Khumalo said.
“The significant gains reflect the hidden values that existed before the change in functional currency where a rate of 1:1 (ZWL: USD) was applied before the introduction of the inter-bank rate.”
As at 30 June 2019, total assets were ZWL433.5 million compared to ZWL109.9 million in the prior year on the back of the revaluation of properties and monetary assets.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.