ZimRE Holdings has published its 3rd quarter trading update with stellar financial performance for the trading period under review. The group’s income has increased by 193% in inflation-adjusted terms. The company’s growth realized is greatly propelled by expanded business operations in the reinsurance and life and pension schemes with each contributing 53% and 35% respectively.
The recently realized dynamics of financial outturn have been due to increased forex insurance policies with 40% of the underwriting policies being done in US$. This huge adjustment has later passed the record to reinsurance with remitted figures that are less affected by inflationary pressures. Life and Pension recorded most of its policies in USD currency. It is more likely that with the relaxation of covid infections, there was a reduction by a greater margin in claims processed for life insurance.
Total expense claims increased by 56% in inflation-adjusted terms and 613% in historical terms. The increase was a result of higher claims experienced from agriculture and cyclone-related claims and high operating costs recorded by local entities due to inflationary pressures. The inflationary pressure greatly affected underwriting costs with the maximum inflation recorded at 268 % by October end 2022.
The projection is that with the interest rate plunged to 200%, the group will continue its business growth. The group is confident that with more focus placed on strong cash generation, the growth objective will be realized.
‘’As the Group continues to pursue its business growth triangle with more focus on strong cash through the adoption of the Eagle mentality which notwithstanding the downgrading projections both by the World Bank and the Ministry of Finance and Economic Development from 4,1% to 2.9% and 5.5% to 4.6% respectively will propel the ZHL Holdings to actively seek local and regional opportunities to create security, growth and profitability as the Group repositions itself as an international player’’, the trading update decrees.