·         ZHL records 9% growth in total income

·         GPW up 13% while total expenses rise by 36%

·         Profitability levels sustained despite harsh economic environment

Harare - In the full fiscal year ended 31 December 2022, Zimre Holdings Limited leveraged on resilient performances of its underlying businesses amidst a tough economic environment, and recorded a strong positive performance.

The Group posted an inflation adjusted total income of ZWL39.5 billion, which is a 9% surge from ZWL36.3 billion recorded in the prior year. The growth was attributed to an overall positive investment returns, strong top-line growth in premium income particularly in Botswana and Zambia and growth in the life and pensions business domiciled in Zimbabwe. The highly volatile currency market in Zimbabwe has resulted in properties constantly being valued upwards in nominal terms, which effectively drove up Zimre’s investment income in the year under review.

Following the easing of Covid-19 effects on business in the region, along with improving supply chains, Gross Premium Written for the Group rose by 13% against prior year levels to ZWL20.4 billion as real business growth in the region and locally buttressed performance. Regional operations accounted for 43% of the aggregate Gross Premium Written.

On the downside, the Group’s total expenses increased by 36% against 2021 levels to ZWL30.1 billion due to unprecedented high claims in the non-life reinsurance entities owing to climate change effects. The growth in total expenses exceeded the marginal growth in total income. The growth in total income and operating and administration expenses was also driven by exchange rate effects, while non-life reinsurance claims stood out, with a claim ratio of 71%, which spiked up total expenses.

However, the Group sustained profitability in inflation adjusted terms, with a profit after tax of ZWL4.1 billion as fair value gains on financial assets and investment properties as well as a strong top-line growth in some business units buttressed profitability of the Group.

The Board of Directors to declared a final dividend of ZWL250,269,677 or ZWL13.76 cents per share for the year ended 31 December 2022. This brings the total dividend for the year to ZWL405,652,702 or ZWL22.31 cents per share.

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