ZHL in final phase of Emeritus consolidation
ZIMRE Holdings Limited (ZHL) says it is working on broadening its ecosystem through group synergies and various partnerships locally and across the African continent, which is expected to drive the injection of new capital into its regional operations.
The drive is part of the entity’s strategic focus and determination to improve the performance of its core businesses.
This comes as the ZHL is now in the final phase of consolidating its regional reinsurance cluster under the Emeritus International Reinsurance, following the Emeritus Re -Botswana amalgamation into Emeritus International Reinsurance. According to ZHL, the injection of viable capital into the regional reinsurance units will allow the group to further expand the Emeritus brand on the African continent.
In June this year, the group managed to obtain approvals to inject capital into Emeritus Re – Mozambique, a recapitalisation programme that will assist the unit in scaling up its underwriting capacity. In the statement accompanying the group’s half-year financial results for the half year to June 2023, ZHL board chairman Mr Desmond Matete said the group will stick to maintaining its strategic focus of invigorating its core businesses as it continues to build on a rich 40-year legacy.
“The group’s aim is to harvest its insurance value chain and broaden its ecosystem through group synergies and various partnerships locally and across the African continent.
“Consolidation of the group’s regional reinsurance cluster under Emeritus International Reinsurance 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,” said Mr Matete.
ZHL on the other hand, indicated it was on course to completing some of its infrastructure and landmark development projects in the second half of 2023. The projects consist of a mixed-use development in Mazowe, which is earmarked to bring commerce, aid in the national devolution strategy, and encourage urbanisation of the area as a focal growth node.
“ZHL is committed to ensuring all its projects align with ESG (Environmental, Social and Governance) principles to ensure their sustainability and benefit to all the Group’s stakeholders.”
In terms of performance in the period under review, the group posted a 54 percent increase in profit to $167,6 billion in inflation-adjusted terms credited mainly to foreign exchange gains on US dollar-denominated net monetary assets and revaluation gains on investment properties.
The group’s total revenue slumped 25 percent to $105,8 billion in inflation-adjusted terms from $141,2 billion anchored by core business growth in the reinsurance and life and pensions businesses.
Fair value gains on foreign currency-denominated assets also contributed to the realised growth in earnings.
ZHL property business saw a 172 percent growth in rental income in inflation-adjusted terms.
Conversely, the Insurance service result was negative stemming from an increase in direct insurance service expenses which grew by 17 percent and 412 percent, respectively, on account of an increase in directly attributable expenses.-herald
