ZIMBABWE Stock Exchange listed financial services outfit, ZimRe Holdings Limited, says it will scale up ongoing expansion projects by exploring for opportunities across Africa.
In a commentary to the firm’s financial statements for the half year ended June 30, 2023, ZimRe said broadening partnerships will be vital in its growth ambitions.
“The ZHL Group maintains its strategic focus on growing and invigorating its core businesses as it continues to build on a rich 40-year legacy,” ZimRe said in the financial statements.
“The group’s aim is to harvest its insurance value chain and broaden its ecosystem through consolidation of the group’s regional reinsurance cluster under the Emeritus International Reinsurance.
“It has entered its final phase following the approval of the amalgamation of Emeritus Re-Botswana into Emeritus International Reinsurance.
“This move is set to encourage the injection of additional competitive capital to the regional reinsurance units enabling them to further expand the Emeritus brand throughout the African continent,” the statement said.
It said regulatory approvals to inject capital into Emeritus Re-Mozambique were secured during the review period.
The injection of fresh capital into the business is expected for the Mozambique unit to improve its underwriting capacity.
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During the review period, ZimRe’s total income decreased by 25% from ZW$141,2 billion to ZW$105,8 billion in inflation-adjusted terms.
However, it reported growth in historical cost terms.
“The group recorded steady growth in profit for the period with an increase of 54% to ZW$167,6 billion recorded in the current period in inflation adjusted terms and a 671% growth under historical cost terms to ZW$155,,8 billion,” ZimRe said.
“The positive growth in profitability is largely driven by foreign exchange gains on USD denominated net monetary assets and revaluation gains on investment properties.
“The growth (in total income) was anchored by core business growth in the reinsurance and life and pensions businesses as well as fair value gains on foreign currency denominated assets.
“The property business registered growth in rental income increasing by 172% in inflation adjusted terms and 700% in historical terms against prior year.
“Insurance service result was negative given an increase in direct insurance service expenses, which grew by 17% and 412%, respectively on account of an increase in directly attributable expenses,” ZimRe added.
The Zimbabwe dollar traded at US$1:ZW$5 739,79 on June 30 2023 and US$1:ZW$370,96 on June 30 2022.