HARARE, September 29 (The Source) – Zimre Holdings has posted a 63 percent growth in operating profit to $2,5 million driven by positive performance in reinsurance and general insurance units.
Zimre’s portfolio includes reassurance, short-term insurance, life reassurance and property. Total revenue dipped by 10 percent to $32,5 million but net profit at $1,25 million was 45 percent higher on the prior year.
Operating and administrative expenses went down by 22 percent but the group said it also lost $1,71 million due to restructuring an agro-industrial associate.
“Group profitability was, however adversely affected by the $1,71 million share of loss from an agro-industrial associate which is being restructured to improve future performance,” said Zimre chairman Benjamin Kumalo on Thursday.
Gross Premium Written (GPW) was 8,3 percent down to $38,5 million, driven by market contraction in the domestic insurance business.
Most of the group’s units performed negatively, with Life and Pensions’ profit before tax 40 percent lower to $1,28 million after experiencing a 170 percent increase in claims and a surge in finance costs.
Total assets marginally increased by four percent to $149,5 million.
The group did not declare a dividend citing a need to grow its capital base.