Zimre Holdings records $5.8 million profits
LISTED financial services group, Zimre Holdings Limited (ZHL), recorded a $5,8 million profit during the year ended December 31, 2017, from $1.5 million posted in the prior year.
During the period under review, the group’s total income increased by 20 percent from $30,9 million in the prior year to $37,2 million largely due to improvement in revenue from property sales at Zimre Property Investments.
In its abridged audited financial results for the period, Zimre said its profitability improved from $1,5 million in 2016 due to the significant turnaround in bottom line performance.
“In response to the positive and significant growth in total income, profit for the year improved from negative $1,5 million in 2016 to $5,8 million in 2017,” said the group.
“The significant bottom line performance was mainly attributed to significant turnaround at Baobab Re, which adopted and implemented a prudent and selective underwriting strategy; profit from disposals arising from the portfolio restructuring exercise and write offs of reinsurance legacy liabilities.”
It also noted favourable claims experience in the regional markets, which saw claims decline by 32 percent from $4,8 million in 2016 to $3,3 million in the year under review, as well as attainment of operational efficiency and improvement in the management of costs to revenue.
ZHL is an investment company with sustainable core competencies in the insurance and property sectors with subsidiaries and associates in Zimbabwe, Botswana, Malawi, Mozambique and Zambia.
The group also underwrites business from other strategic markets on the African continent.
The growth in ZHL total income was also attributed to a steady recovery in the core reinsurance operations due to the ongoing restructuring exercise, growing market confidence and improvement in underwriting standards.
“Measures being implemented by the group to sustain the positive performance results among others include consolidating and strengthening the capital base of the reinsurance operations to improve underwriting capacity, and rebranding of the reinsurance operations under the ‘Emeritus brand’ in order to provide the necessary impetus for growth,” said the group.
ZHL also hopes that the Emeritus International structure would enable it to raise offshore capital required to strengthen the capital base of the group reinsurance operations and for business expansion.
For the year under review, the group has proposed a final dividend $1,1 million.
In the outlook, the company hopes to record improved economic growth rates this year in all the five countries it has presence.
It said this was in view of anticipated relative political stability, positive global economic outlook and growth in key sectors of the economies such as agriculture and mining.