Harare – Diversified financial services group, Zimre Holdings Limited said it had a slow start to 2018 charging that its performance so far has largely been mixed. The CE Mr Kudenga said performance in key result areas, business sectors and geographical markets was mixed although Zimbabwe continued to outperform.
Gross Premium Written which refers to collections from contributors came in at $14.4 million as at May 31 which was 9 percent ahead of the same period last year.
Total revenue recorded in the same period at $13.5 million was however 5 percent below that was achieved in the same period last year.
In 2017, ZHL acquired an 80 percent stake in Credit Insurance Zimbabwe Limited (Credsure) and in March 2018 it consolidated its reinsurance operations under Emeritus Reinsurance International in a bid to grow its market share and profitability.
Giving a trading update in the capital on Wednesday, Kudenga said domestic operations continued to be strong contributing about 64 percent of total revenue as at May 31, 2018 compared to 58 percent in the prior year.
“Emeritus Re Zimbabwe continued on its upward trajectory in terms of business growth and profitability whilst the 2017 acquisition of Credsure has begun to yield fruit.
“Since its intergration into the group Credsure has attained turnaround recording a 50 percent growth in GPW, 47 percent in total revenue and 233 percent growth in operating profit during the period under review.
“Credsure is reaping the benefits of an aggressive restructuring program which has encompassed streamlining of the organizational structure, strengthening of the capital base, implementing an advanced ICT system to improve efficiencies and introducing the Underwriting Management Agency (UMA) business model, a first in the Zimbabwe Insurance Market.”
Kudenga said the Property subsidiary, ZPI, experienced challenges in rental income growth due to adverse market conditions which resulted in voids and rental collection challenges. The disposal ZimRe Centre also contributed to the subdued rental income performance.
However, the conversion of the proceeds from the disposal to the construction of Sawanga shopping mall in Victoria Falls as well as the conversion of Nicoz House in Bulawayo into student’s accommodation and other value adding initiatives is expected to enhance rental revenue growth in 2019.
Going forward, the group said it is making significant progress in operationalising Emeritus International Reinsurance Company based in the Botswana offshore International Financial Services Centre (IFSC) zone.
ZHL added that the groundwork that is being undertaken includes the transfer of assets from Mozambique and Malawi to Emeritus International. The offshore company, which will be listed on the Botswana Stock Exchange (BSE) in the medium to long-term is to be used by the group to raise offshore capital required to strengthen the existing reinsurance operations and for regional business expansion.
