ZimRe Holdings posts $9 billion profit
ZIMRE Holdings Limited bounced back to profitability, recording $9 billion profit after tax (PAT) during the half year ended 30 June 2022 from a loss of $1.6 billion attained in during the same period last year.
The company and its subsidiaries are engaged in the provision of life assurance, non-life insurance (general insurance, reinsurance, healthcare, funeral assurance), property management and development services, asset management, and micro-lending.
The group’s total income grew by 355 percent to $28.4 billion for the half year ended 30 June compared to the prior period.
According to the company’s interim financial statements released last week, the profit surge was attributable to fair value gains of financial assets and investment properties.
“All key business operations achieved strong performance, the domestic reinsurance operations’ profitability was depressed due to high claims experience mainly from the agriculture sector resulting in a combined ratio of 172 percent. Total comprehensive income was $11.4 billion compared to a loss of $1.2 billion in 2021,” the group’s board chairman, Mr Desmond Matete said in a statement accompanying the half year financials.
The statement
said
inflationary pressures weighted down the real business growth in the region.
Consequently, the group’s total claims and expenses grew from $6.9 billion to $15 billion as net benefits and claims rose by 20 percent. Moreover, the group’s earnings per share grew by 585 percent to 446.62 cents from a negative 92.09 cents in the same period last year.
In consideration of the group’s level of profitability and reserves, economic downturn as a result of the Russia– Ukraine conflict and associated risks to business growth, the company declared in its interim financial statement its first US$ denominated dividend of US$250 000.