By ETimes
Zimre Holdings Limited (ZHL) reported a 13% rise in inflation adjusted gross premium written (GPW) for the year ended 31 December 2022 buoyed by real business growth in the region and from domestic operations.
Chairman Desmond Matete, in a statement accompanying the results, 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% to GPW in 2022 compared to 41% in 2021 and thus remain key strategic investments which provide diversification value to the Group,” he said.
ZHL total income appreciated by 9% 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,” 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% 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.
“Going forward, the Group will be improving its underwriting practices using innovative technologies to counteract climate change effects on its key reinsurance business lines.”
Local non-life reinsurance activities were hardest hit by the large number of agricultural claims, which resulted in a 71% claims ratio.
“Operating and administration expenses spiked due to exchange rate driven inflationary pressures experienced primarily in Zimbabwe,” he said.
Profit after tax declined by 57% to $4.1 billion.
In the outlook, he said the group will begin a new financial concentration on landmark and infrastructure development with a focus on sustainability.
“These activities will be undertaken through its Eagle Real Estate Investment Trust (REIT) to enable both local and international investor participation.”
It declared a final dividend of $13.76 cents per share – Harare
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