- Gross Written Premium grew by 20%
- Net earned premium increased by 37%
- Recorded a growth in profit from a loss recorded in the prior comparable period
Zambia domiciled Prima Reinsurance company posted a positive performance for the half year period ended 30 June 2020 compared to the same period last year.
According to a six months interim publication, the company said it recorded growth of 20% in Gross Written Premium (GWP) from ZMW25.35 million in 2019 to ZMW30.46 million in 2020.
The growth was attributed to a general increase in Life, Property and Engineering classes of business.
Further, the company saw an increase in the net earned premium by 37% from ZMW9.07 million in 2019 to ZMW12.43 million in 2020.
Prima also recorded profit after tax of ZMW1.703 million for the first half of 2020 compared to a loss of ZMW5.45 million in the first half of 2019.
The increase in the profit was due to a reduction in operating expenses and increase in other income arising mainly as result of the devaluation of the Kwacha against the US dollar.
The company also highlighted that the financial position remains robust with total assets increasing from K 65.24 million to K 76.62 million while the net current assets position for the half year ended 30 June 2020 was ZMW33.63 million.
On the outlook the company said, it expects a reduction in the GWP in the second half of the year due the projected contraction in the economic activity therefore the focus will be on cost containment and financial discipline as they are committed to remaining resilient in the face of the pandemic.
Prima added that, “We are pleased to announce that the Company underwent a successful capital raise in July 2020.
“The capital raise was structured as a renounceable rights offer and this was underwritten by the Industrial Development Corporation (“IDC”) an investment holding company owned by the Government of Zambia.
“Following this, the Company now has an authorized share capital of K 75m of which K 45m is paid up. IDC now has a shareholding of 28.17% in the Company.”
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