CBZ Holdings underwriting income increase 31.6% to $2.5 mln in Q1 2018
By Insurance24
HARARE, CBZ Holdings underwriting income units increased 31.6% to $2.5 mln during the quarter ended 31 March 2018 compared to $1.9 mln same period in 2017. This was largely supported by investment in new products unveiled during the period.
The Group’s insurance units include CBZ Insurance which as at September 2017 commanded a market share of 5.3%, CBZ Life at 2.6% and CBZ Risk Advisory at 3.9% during same period.
Acting chief executive officer Peter Zimunya told shareholders at an analyst briefing yesterday that during the first quarter, insurance assets increased to $9.6 mln from $8.3 mln due to growth in underwritten business, as a result of continuous product review and expansion of distribution channels.
The number of policies for the quarter increased 0.8% to 122 000 compared to 121 000 same period prior year.
Meanwhile, CBZ Holdings total income for the quarter increased 20.1% to $45.2 mln compared to $37.7 mln same period in 2017 largely due to strong income generation supported by investment in new products and digital platforms/ channels.
Zimunya said the drive to increase operational efficiencies is now bearing fruit, with 5% decline in operating costs which amounted to $24.8 million from $26 million in 2017 same period.
During the period, total deposits increased marginal 1.2 percent to $1.83 billion compared to $1.8 billion prior year same period. According to Zimunya, total deposits growth resulted from 26 percent increase on savings deposits, which is in line with the Group’s thrust to mobilise retail deposits to manage cost of funds.
The liquidity position of the Group remained sound with a ratio above the regulatory ratio of 30% while the capital adequacy levels for the entire Group’s subsidiaries are above the regulated levels except newly formed CBZ Risk Advisory and efforts are underway to regularize its capital positions.
The group net advances for the quarter declined 7.2 percent to $947.3 million from $1 billion in 2017. On other hand total assets increased 2.5 percent to $2.18 billion compared to $2.13 billion same period in 2017 driven by growth in total deposits and profitability.
Funds under management increased to $237 million from $148 million largely as a result of a well diversified “FUM” portfolio which yielded positive returns despite subdued performance on the stock market during the quarter.
The group’s return on asset and return on equity ratios improved as a result of profitability growth C/I ratio improved owing to 20% revenue growth coupled with a 5% cost reduction.
Zimunya said the Non Performing loan ratio at 10.2 percent an increase from 6.7 percent continue to be the focal point for the Group in order to enhance the quality of the loan book.
