HARARE, June 22 (The Source) – Zimre Holdings on Wednesday reported a 46 percent growth in operating profit to $2,2 million for the first quarter to March driven by a surge in its reinsurance business and lower business costs.
Gross profit grew 89 percent to $2,1 million over the same period. The Reinsurance business contributed $1,1 million from a loss position of $200,000.
“Baobab Reinsurance has undergone a turnaround and contributed 52 percent of the profit that is indicated in $2,1 million,” said chief executive Stanley Kudenga at the company’s annual general meeting.
Most of the group’s business unit traded positively in the quarter.
Kudenga said the group’s reinsurance unit had its credit rating reviewed upwards to BBB from BB during the quarter.
“We are seeing an increase in business support from the market in tandem with the improved credit rating and increase in business confidence,” he said.
Operating expenses declined by 31 percent and its Gross Premiums Written also declined by 11 percent.
For the remainder of the year, Kudenga said Zimre will focus on quality underwriting.