ZB Holdings insurance units in contrasting profit positions during five months 2018
By Insurance24
HARARE, ZB Financial Holdings life assurance business ZB Life Assurance premiums for the five months to May 2018 increased 22% to $5.3 mln compared to $4.3 mln same period in 2017, which resulted in improved profitability.
Group chief executive officer Ron Mutandagayi in a trading update at the company’s annual general meeting said during the period, Policy surrenders increased while the claims ratio deteriorated from 40% to 48%.
However, the net life technical result improved to $2.8 mln compared to $2.6 mln same period in 2017.
At ZB Re, a 10% reduction in reinsurance premiums from $8.4 mln in 2017 to $7.6 million in 2018 was recorded on the back of delayed booking of certain risks.
Mutandagayi said the loss ratio was contained below 50% resulting in the net reinsurance technical profit of $4.4 mln, being 5% lower than $4.6 mln achieved in 2017.
Meanwhile, Mutandagayi said the Hospital Cash Plan products are due to be launched during the third quarter of 2018.
“This suite of products will compromise Group Hospital Cash Plan for Group Business and ZB Hospital Cash Plan together with MoreCover Hospital Cash Plan for individuals,” he said.
In terms of overall Group performance, ZB Holdings revenue grew 10% to $32.5 million compared to $29.5 million same period in 2017 largely due to increase in banking fees and commissions which was a result of the acquisition of new clients and the number of transactions.
Fidelity Life in recovery transition as revenue grows 63% in five months to May 2018
By Insurance24
HARARE, Fidelity Life Assurance posted a 63% revenue increase to $13.5 million in the five months to May 2018, from $8.3 million recorded in the same comparable period last year which management says indicate that the business is on a strong recovery path.
Gross premium income recorded a 44% growth to $7.3 million compared to $5.1 million realized in prior year.
Chief executive officer Rueben Java in a trading update for the five months to May 2018 the growth was a positive result considering that the group had a 7% shrinkage in the gross premium income recorded last year.
“To us this is a good testimony that our strategy to refocus the business to its core activities is moving in the correct direction and also a clear indication that the business is on a strong recovery path,” he said.
Last year, the Grou made some board changes which saw the coming in Patricia Zvandasara as finance director, Java as chief executive while Gary Dhombo and Francis Dzanya coming on board as non-executive directors.
Java said income from other subsidiaries, which constitute of the funeral assurance, asset management division, actuarial consultancy, property development and micro-financing services, constituted $6.2 million translating to a 93% increase from $3.2 million realized in the same comparable period prior year.
“This shows that all our businesses are performing well and going forward the group is aiming to mend its reputation which had been deteriorating over the years. We are currently sitting at number six market position but our aim is to be number four in the coming 3 to 5 years’ time,” he said.
Fidelity Life total expenses which included claims occurred by the group in the period surged by 30% to $8 million from $6.2 million, on the back of cost of debt risk restructuring which the company initiated late last year. Java said the group is closing monitoring its expenses to ensure that they do not exceed their revenue streams.
On underwriting, Java said the group recorded a 162% increase to $5.5 million from $2.1 million while investment income decreased from $1.8 million to a negative $0.4 million.
“This is a reflection of the general volatility of our stock market which happens in an election year but also a performance of our stocks in our own portfolio,” he said.
Profit before tax also increased from $5.1 million to $5.3 million translating to a 29% growth and Java said the company going ahead will focus growth on three pillars which are brand re-positioning and formulating a sound corporate governance strategy.
