Zimre profit up 1 137pc

HARARE - Zimre Holdings Limited’s profit for the six months to June 30, 2017 soared 1 137 percent to $2,7 million from  $220 649 recorded in corresponding period the previous year, largely due to restructuring initiatives and refocusing anchored on the new strategic focus adopted in last year.

The Zimbabwe Stock Exchange-listed insurance company’s profitability was also due to a turnaround in the net share of profit from associates that contributed a $700 000 during the reviewed period compared to a loss of $1,2 million recorded in 2016.

The group’s total income marginally went up to $15,7 million during the period under review compared to $15,3 million reported in the same period in 2016.

Its gross written premium (GWP) went down to $15,79 million during the period under review from $16,33 million recorded in the same period in 2016.

The company’s board chairperson, Ben Khumalo said: “The performance was achieved despite the loss of $17 million arising from the restatement to fair value less cost to sale of the investments in NicozDiamond and Fidelity Life which were re-classified as non-current assets held for sale,” in a statement accompanying the financial statements.

He added: “The slow growth in income is reflective of the difficult operating environment, reduced demand for insurance product due to low disposable incomes and declining rental rates and revenue due to increasing voids.”

Rental income declined by 14 percent to $1,4 million during the period under review from $1,6 million in the same period in 2016.

Total assets went up to $105,1 million during the period under review from $102,8 million in the same period in 2016.

Regional reinsurance operations posted an overall loss of $400 000 during the period under review compared to a profit of $500 000 in the same period last year mainly due to slowdown in the performance of the Mozambican and Malawian economies.

Emeritus South Africa is currently winding operations and contributed to the loss.

GPW declined nine percent to $8,9 million from $9,7 million which was reflective of low economic activity in those markets.

Profit from the property segment was flat on prior year at $600 000. Net share of associates was a positive $700 000.

 

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