ZB net insurance earnings improve
ZB Holdings’ net insurance related earnings improved to a profit of $0,830 billion in 2021 from a loss of $0,003 billion in 2020 on the back of a 7 percent rise in gross premiums from $1,845 billion in 2020 to $1,982 billion in 2021.
According to the group’s chief executive Mr Shepherd Fungura commentary for financials for the year ended December 31, 2021 the insurance related expenses declined 38 percent to $1,152 billion in 2021 from $1,847 billion in 2020.
The group’s insurance operations are ZB Reinsurance and ZB Life Assurance. According to the financials for the year under review, ZB Reinsurance posted a profit after tax of $0,447 billion in 2021 compared to $0,139 billion in 2020.
Its total assets increased in real terms from $1,349 billion as at December 31, 2020 to close the year 2021 at $1,861 billion.
“The company maintained good relations with its cedants and retrocession partners during the year,” Mr Fungura said.
He said expansion into the Botswana market is set to be finalised in 2022, after the company managed to get an operating licence.
ZB Life Assurance posted a loss of $0,028 billion in 2021, compared to $0,217 billion in 2020.
Its total assets increased in real terms from $5,235 billion as at 31 December 2020 to $5,888 billion as at December 31, 2021.
Elsewhere, ZB Holdings noted that it discontinued operations of ZB Associated Services during the year under review.
It said the Group’s microfinance operation, which was launched in December 2020 and started trading in earnest in January 2021, continues to grow and contribute positively to the Group’s performance
For the year 2021, the group recorded a 122 percent increase in total income from $5,288 billion in 2020 to $11,736 billion. This performance outturn was on the back of an improved non funded-income.
Banking commissions and fees contributed significantly, rising by 83 percent, from $1,836 billion in 2020 to $3,366 billion in 2021.
The fair value adjustments increased by 1 526 percent from $0,218 billion in 2020 to $3,548 billion in 2021 mainly as a result of improved performance of the Zimbabwe Stock Exchange and investment property valuations.
Net interest income registered a solid performance during the year 2021, rising by 212 percent, from $1,060 billion in 2020 to $3,304 billion in 2021.
“As the loans and advances book rose, loan impairment charges also rose by 37 percent, from $0,453billion in 2020 to $0,621 billion in 2021.
Resultantly, net income from lending activities rose from $0,607 billion in 2020 to $2,683 billion in 2021, a 342 percent increase.”-The Herald
