• Total income increased by 137%

  • ZHL began the process of restructuring and repositioning itself in 2021

  • Profit surged to ZW$2.8 billion

ZSE-listed diversified financial services group, Zimre Holding Limited’s (ZHL) total income more than doubled to ZW$10.6 billion for the full year ended 31 December 2021, from ZW$4.4 billion recorded in 2020 driven by the Group’s new structure.

In a statement accompanying the Group’s financial results, Chairman Ben Kumalo said the year 2021 saw ZHL begin the process of restructuring and repositioning itself to include wealth creation and management both for its shareholders and the communities within which it operates.

“This included the integration and reorganisation of Fidelity Life Assurance of Zimbabwe Limited to ensure the business focuses on core business, business acquisition and innovation. The Group also embarked on restructuring its property portfolio and initiating new strategies to ensure portfolio optimisation,” Kumalo said.

Meanwhile, the Group’s profit for the year increased by 107% to ZW$2.8 billion from a comparative 2020 of ZW$1.6 billion despite insurance benefits and claims increasing by 107% and operating and administrative expenses growing by 502%.

Gross premium written was up 53% to ZW$5.2 billion from ZW$3.4 billion while rental income at ZW$294 million contributed 3% to the Group’s total income.

“The increase was despite disparities in the growth of investment property values and rental income as well as a direct consequence of the anticipated cost saving from de-listing the Group’s property arm,” Kumalo said.

Kumalo highlighted that concerted effort was given to implementing appropriate responses to the pandemic and these responses included robust initiatives for investments which led to notable growth in investment income which surged by 269% to ZW$171.6 million during the period under review.

He added that also among the key responses was prudent and tough decisions on costs given both the pandemic and inflation in Zimbabwe, hence total expenses for the year soared by 186% to ZW$6.44 billion while the cost to income ratio dropped from 50% to 41%.

In line with the Group’s dividend policy and after careful consideration of the Group’s level of profitability and reserves, economic downturn as a result of the COVID-19 pandemic and associated risks to business growth, ZHL directors declared a total dividend payable of ZW$102.6 million or ZW$5.64 cents per share.

Looking forward, the Group will continue to pursue its new DNA of being a Financial Services Group with core competencies in Insurance, Property and Wealth Management.

“The strategy will be anchored by robust investment initiatives, continued consolidation of operations to capitalise on economies of scale while eliminating duplication of costs, and exploring strategic partnerships both locally and regionally to enhance its market presence,” Kumalo said.

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