eBusiness Weekly
Enacy Mapakame
Zimre Holdings Limited (ZHL) remained profitable during the five months to May 2018, but below same period last year due to a slow start to the year as the operating environment remained volatile across the board.
ZHL chief executive officer Stanley Kudenga, told shareholders at the group’s annual general meeting on Wednesday that regional operations for instance were operating with low capital base resulting in performance that was below expectations.
“The frequency and high severity of claims in some regional markets particularly Mozambique, also contributed to the subdued performance in terms of profitability of the business,” he said.
The property subsidiary, Zimre Property Investment (ZPI), also experienced challenges in rental income growth due to the adverse market conditions, which resulted in high voids and rental collection challenges.
ZHL has operations in several SADC countries. Domestic operations were strong in the period under review contributing 64 percent of total revenue compared to 58 percent during the same period last year.
Gross premium written grew 9 percent to $14,4 million while total revenue recorded in the same period was at $13,5 million, representing a 5 percent decline from same period last year.
The recently re-branded Emeritus Re Zimbabwe maintained an upward trajectory in profitability and growth while the 2017 acquisition of Credit Insurance Zimbabwe Limited (Credsure) is beginning to bear fruit.
Kudenga indicated that since Credsure was integrated into the group, it attained sustainable turnaround recording a 50 percent growth in gross premium written.
Its total revenue for the period was 47 percent firmer while operating profit jumped 233 percent from same period last year.
“Credsure is reaping the benefits of an aggressive restructuring programme, which has encompassed streamlining of the organizational structure, strengthening of the capital base, implementing an advanced ICT system to improve efficiencies,” said Kudenga.
Despite a slow start to the year, management remains upbeat of achieving performance targets set for 2018. Focus will be made towards its core competencies in insurance and property as well as leveraging on a strong balance sheet and regional diversified business portfolio to create shareholder value.
“The group is well positioned to take advantage of the new economic order expected after the July 30 elections and the attendant business opportunities,” said Kudenga.
