ZIMBABWE Stock Exchange-listed insurance group Zimre Holdings Limited operating profit for the first four months to April was up 38% to $1,9 million driven by cost-cutting initiatives across the group and improved collections, the group chief executive has said.
Report by Victoria Mtomba
Speaking at the group’s annual general meeting yesterday, Zimre group chief executive Albert Nduna said the focus of the group was to write profitable and collectable business to minimise provisions this year.
Nduna, however, said gross premium written declined slightly in Zimbabwe due to strong selection including cancelling bad business while Malawi registered negative growth.
Malawi registered a negative growth from $7,9 million to $4,7 million.
“As a result the group gross premium income went down 24% against the same period last year. Over the years, Malawi has been the best performing market commanding 30% of the group business. We are encouraged by the improvement in the Malawian economy which has seen the exchange rate improving from an all time high this year of Malawi Kwacha 414 to the current Mk330 to the US$,” Nduna said.
Comprehensive income grew by 553% during the period under review to $1,7 million.
Nduna said efforts were at an advanced stage to resolve the capitalisation issues at the group’s agro-industrial investment CFIHoldings.
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“As you have seen in the media, the cautionary statement said that there are two major transactions being completed at milling and poultry levels. This will enable CFI to improve liquidity, the grain throughput and the efficiency at slaughter stage, thereby reducing costs and increasing profits. This will breathe new life into the CFI group,” Nduna said.
ZHL recorded an increase in gross premium of 11% from 2011 to 2012 from $50 million to $55,7 million with external operations accounting for 61% of total gross premium written.
For the 12 months period in 2012 the group increased provision for doubtful debts from the debtors due to the liquidity situation in the country and delays in payments which are overdue and an amount of $4,5 million was provided for.
In the year 2012 the group recorded an increase in claims of $5,3 million to $20,2 million.
