Zimre Holdings Ltd to transfer shares

LISTED diversified group, Zimre Holdings Limited is at advanced stages of transferring its shareholding in regional operations into Emeritus International Reinsurance Company.

Emeritus International Reinsurance Company is an offshore structure registered under the Botswana International Financial Services Centre, which will house all of ZHL’s regional operations.

The company, which is now being operationalised, will be used by the group to grow its regional footprint.

Earlier this year the group secured exchange control approvals for the establishment of the reinsurance company in Botswana.

“The central bank also approved that Baobab, our operation locally be allowed to setup an offshore account and transfer about $2 million which will allow us to underpin our foreign underwritings,” Zimre holdings chief executive Stanley Kudenga told the group’s annual general meeting on Wednesday.

Mr Kudenga said the group was still committed to its long term goal of listing on the Botswana Stock Exchange. He said that proceeds from Continental Reinsurance which amount to $600 000 will be channelled through Emeritus to further strengthen its capital base in Mozambique.

On the group’s first quarter performance, profit increased 48 percent to $1,35 million from $0,92 million recorded the previous year.

Mr Kudenga said improved performance during the period under review was made possible by the restructuring measures that the group under took in the prior year.

“The performance is pinned on prudent and selective writing, continued recovery at Baobab Re, improvement in performance from associate companies and subdued claims experienced across most group reinsurance operations,” he said. However revenue for the period under review declined 13 percent to $6,52 million compared to the same period last year.

In terms of country revenue contribution, Zimbabwe had the highest contribution at 62 percent, Malawi 13 percent, Zambia and Mozambique 10 percent each and Botswana five percent.

Mr Kudenga further highlighted that the decline in revenue was due to the soft domestic insurance market and the impact of the loss of value of the regional currencies against the United States Dollar.

Under-performance of property operations mainly due to the economic challenges in Zimbabwe also had a toll on revenues.

Also, Emeritus South Africa was not trading as it was winding up operations during the period under review.