• Tue. Jul 16th, 2024

Infrastructure development to anchor ZHL going forward

ByEconomic Times

Jul 18, 2023

By ETimes

Zimre Holdings Limited (ZHL) reported that going forward the group will begin a new financial concentration on landmark and infrastructure development with a focus on sustainability.

Chairman Desmond Matete, in a statement accompanying the annual report said, “These activities will be undertaken through its Eagle Real Estate Investment Trust (REIT) to enable both local and international investor participation.”

ZHL has since registered a REIT to spearhead value creation and infrastructure development through public and private partnership projects.

Mr. Matete said diligent updating of products and services enabled the group to remain relevant and served well in buttressing the continued business growth and the adoption of the ‘Eagle Culture’ has also helped.

The new culture aims at inculcating the characteristics of an eagle in daily operations with the ultimate objective of amplifying the business’ value proposition to all our stakeholders.

“At the core of the new culture is the desire to ensure long-term quality service delivery as part of the overall strategic intent,” he said.

Since 2021, the group has been going through a culture transformation to align the organisational purpose, strategic values and leadership behaviours.

“The renewed energy, including the various initiatives the group is embarking on, are set to bring value realization to the shareholder and the community at large,” said Mr. Matete.

ZHL reported a 13 percent rise in inflation adjusted gross premium written (GPW) for the year ended December 31, 2022 buoyed by real business growth in the region and from domestic operations.

Board chairman said the group produced good results despite the sizable difficulties it faced in its working jurisdictions.

He said its core companies had resilient operations.

GPW closed the period under review at $20,4 billion compared to $18 billion in the prior period.

“The regional operations contributed 43 percent to GPW in 2022 compared to 41 percent in 2021 and thus remain key strategic investments which provide diversification value to the Group,” he said.

ZHL total income appreciated by 9 percent to $39,5 billion from $36,3 billion in 2021.

“The growth was driven by 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,” Mr. Matete said.

“Investment income growth was underpinned by fair value gains on investment properties largely driven by the exchange rate movements.”

Expenses went up by 36 percent to $30,1 billion from $22,1 billion in the comparative period.

“The spike in expenses was on account of unprecedented high claims experience in the non-life reinsurance entities as a result of climate change effects,” he said – Harare

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