Harare- Zimnat Life and Zimnat Lion, the 2 insurance units of Masawara operating in Zimbabwe both registered premium gains in the first 6 months period of the year.
Zimnat Life offers life assurance while Zimnat Lion is a short term insurance business. The companies have been operating in Zimbabwe since 1946.
Given the background of a worsening macroeconomic environment characterized with a dearth in aggregate demand, company closures, and retrenchments, most insurance companies have failed to register growth in premiums.
The insurance landscape and business in general have tightened over the years in line with the economy. Consolidation has become the order of the day as contributors become more discrete in determining insurers with whom to place their hard earned money.
Business within the sector has now largely concentrated within a few solid insurance firms with trusted brands and a record for settling claims at the expense of weak insurers.
Against this background, Zimnat has sought to defend its turf and grow its business through a consolidation with African insurance giant Sanlam. Late in 2016, Sanlam acquired 40% ownership in Zimnat.
The 2 Zimnat units however registered a slowdown in profitability in the same period, according to the latest half year results published by Masawara.
Zimnat Lion registered a -8% death in after tax profit to $0.83 million in the 6 months period which compares to $0.88 million in the same period last year. Zimnat Life saw its profit after tax ease by -39% to $1.7 million.
