- Loss after tax stood at ZWL$43 million
- Total assets marginally declined
Harare – FBC Insurance Company posted a negative 2019 performance due to the harsh economic headwinds that persisted for the greater part of the year.
In a results publication, the company said it recorded an inflation adjusted loss after tax of ZWL$43 million compared to a loss of ZWL$22 million in the prior year.
The performance was attributed to the hyperinflationary operating environment, low liquidity, low productivity, low employment levels and acute foreign currency shortages.
FBC said the business was hard hit by claims and operating expenses and inflation.
The company stressed that total revenues of ZWL$78.1 million were inadequate to cover insurance claims of ZWL$32.2 million, operating expenses of ZWL$45.9 million and a monetary loss of ZWL$22.6 million amongst others.
Nonetheless, the company highlighted that the full impact of inflationary pressures on the traditional business was reduced by the company’s investment strategies that yielded positive results.
“As inflationary pressures continued to negatively affect premium revenues, attention shifted to hedging via a robust investment strategy.” Said the company.
Likewise, the company’s total assets closed the year at ZWL$198 million down from ZWL$200 million as at 31 December 2018, indicative of the loss of value due to the prevailing hyperinflationary environment.
On the outlook, FBC said it will continue to adopt various business models that suit the economic environment that is threatened by the COVID-19 pandemic and hyperinflation, in order to consolidate its position in the market.
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