- Repositioning includes adding wealth creation and management both for its shareholders and the communities within which it operates to its core business
- Integration and reorganisation of Fidelity Life Assurance also part of the restructuring
- Premiums grew by 102%
Harare – Diversified insurance holding Group, Zimre Holdings Limited (ZHL) says it is confident that the repositioning process in which it is undergoing will strengthen it against the macro-economic shocks prevailing in Zimbabwe and the region.
ZHL whose core business has been premised on insurance and property repositioned itself this year to include wealth creation and management both for its shareholders and the communities within which it operates and is currently in the process of significant restructuring.
“The Group is in the process of significant restructuring that includes: Integration and reorganisation of Fidelity Life Assurance to ensure that the business is focussed on core business, business acquisition and innovation.
“Reorganisation of the regional reinsurance operations that will positively impact their competitive capital, Reconfiguration of business units to anchor and propel wealth management activities. This will see ZHL spearheading significant impact investments in the economy,” chairperson, Benjamin Khumalo said in a statement accompanying the Group’s half year results ending 30 June 2021.
Meanwhile, the ZHL’s premiums for the six months grew by 102% to ZW$2.38 billion from the same period prior year figure of ZW$1.18 billion.
Total insurance income surged by 111% to ZW$1.72 billion whilst total income decreased by 32% to ZW$2.15 billion due to a 123% drop in fair value adjustments on investment properties.
However, the Group posted a loss of ZW$544.92 million from a profit of ZW$2.51 billion in 2020 owing to the impact of the actuarially determined gross change in insurance and investment contract liabilities and the impact of the net loss on the monetary position.
Khumalo said total expenses increased by 154% to ZW$2.37 billion from a comparative same period last year of ZW$ 933.75 million.
“Growth in total expenses was largely attributed to inflationary pressures on operating and administration expenses and once-off restructuring costs following the successful delisting of Zimre Property Investments (ZPI),” he added.
Total assets for the half year decreased by 0.7% to ZW$14.94 billion whilst total equity dropped to ZW$6.61 billion from ZW$6.94 billion as of 31 December 2020 as a result of the loss incurred in the half year to 30 June 2021.
Cash and cash equivalents for the period were up 21% to ZW$1.73 billion in line with the Group’s strategy to generate cash for operational use and investment.
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