Zimre reports impressive set of results
Insurance giant, Zimre Holdings Limited (ZHL), has reported positive financial results for the year ended 31 December 2022, despite challenging operating conditions in its jurisdictions.
The group’s total income for the year was $39,5 billion, a 9 percent increase from prior year. On a historical cost basis, total income increased by 417 percent to $69 billion.
The group attributed its growth to positive investment returns, strong top-line growth in premium income, particularly in Botswana and Zambia and growth in the life and pensions business in Zimbabwe.
Investment income growth was underpinned by fair value gains on investment properties largely driven by exchange rate movements.
Gross premium written (GPW) came in at $20,4 billion, a 13 percent increase in inflation-adjusted terms, and a 272 percent increase from the same period the previous year in historical terms.
Regional operations contributed 43 percent to GPW in 2022, compared to 41 percent in 2021, providing diversification value to the group.
However, inflation – adjusted total expenses grew by 36 percent from the previous year, with historical cost terms showing a 457 percent increase, primarily due to high claims experienced in the non-life reinsurance entities as a result of climate change effects.
The group plans to improve its underwriting practices using innovative technologies to counteract climate change effects on its key reinsurance business lines.
Despite these challenges, the group recorded a profit after tax of $4,1 billion, sustaining profitability in inflation-adjusted terms. In historical cost terms, profit after tax increased by 330 percent to $23,2 billion. Total assets increased by 51 percent in real terms to $122,2 billion, driven by investment properties and equity investments, which account for 67 percent of the group’s total assets.
The group remains optimistic about its future prospects, with its strategic investments in the region providing diversification and growth opportunities.-ebusinessweekly
