HARARE, September 22 (The Source) – Zimre Holdings recorded a profit of $2,7 million from January to June 2017 compared to $200,000 in the same period last year driven by an improved performance of its reinsurance and general insurance units.
Total income increased from $15,2 million in the same period last year to $15,7 million.
Zimre’s portfolio includes reassurance, short-term insurance, life reassurance and property.
Gross Premiums Written (GPW) declined 3,2 percent to $15,7 million, on the back of a contraction in the domestic insurance business. Claims declined 10 percent to $3,4 million.
“Profit for the period increased by 1137 percent mainly due to the adoption of improved underwriting standards, increased retention, a 69 percent growth in investment income, the positive spillovers from the restructuring and implementation of cost containment measures,” said group chairman, Ben Khumalo in a statement.
Operating and administrative expenses were down 3,8 percent from $6,1 million to $6,3 million.
The property business reported a 22 percent decline in revenue to $1,5 million as a result of reduction in rental rates and falling occupancy levels and reduced uptake of stands due to low disposable incomes.
Cash and cash equivalents declined by 30 percent from $11,1 million to $7,8 million.
Total assets increased marginally to $105 million.
The group did not declare a dividend.