- Merged two Botswana reinsurance entities and recapitalized its Mozambique subsidiary
- Achieved 23% increase in Reinsurance, 43% rise in Short-term Insurance
- Pursuing strategic positioning for evolving insurance needs
Harare- ZIMRE Holdings, a diversified financial services group, is poised for growth as it pursues a strategic expansion into North and Central African markets through its North-Central Africa growth policy.
This comes on the back of recent successful developments, including the merger of two Botswana reinsurance entities and the recapitalization of its Mozambique subsidiary.
In the first quarter of 2023, ZIMRE recorded revenue growth across all its business segments.
The group's flagship Reinsurance and Reassurance segment saw a 23% increase in insurance contract revenue, rising to ZWL210.0 billion from ZWL171.1 billion in the same period last year. This was driven by new business acquisitions and increased market share in Zimbabwe and the region.
The Short-term Insurance business also witnessed remarkable growth, with direct business increasing from 33% to 46% of the segment's revenue. This led to a 43% rise in insurance contract revenue, which reached ZWL10.7 billion. Profitability in this segment was further enhanced through a reduction in acquisition costs.
The Property segment continued to thrive, posting a 62% revenue growth to ZWL11.0 billion, underscoring the resilience and appeal of the property market as a preferred investment haven. The portfolio maintained a strong average collection rate of 90% and a marked improvement in portfolio voids from 22% to 15%.
Insurance Broking business recorded a revenue growth of 53% to ZWL11.5 billion, driven by strong organic expansion in the Farming and Healthcare segments, with a 100% business renewal rate. This demonstrates the trust and confidence of the diverse client base.
Life and Pensions segment also experienced strong growth, with insurance contract revenue increasing by 20% to ZWL79.0 billion. This was driven by strategic acquisitions of new business and innovative product development, particularly the popular "Vaka Yako" product.
Wealth Management businesses saw a significant 132% revenue increase to ZWL19.0 billion, facilitated by new business growth and collaborations with key strategic partners.
Looking ahead, ZIMRE Holdings' strategy involves increasing the contribution from its regional investments by upscaling their balance sheets and effectively deploying competitive capital across all strategic business units.
The group remains optimistic about delivering growing value to its stakeholders, leveraging its strong cash position and the successful execution of its North-Central Africa growth policy.
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