CBZ Holdings insurance units profitable in H1 2017, group to expand insurance products
Insurance24 Reporter
HARARE, CBZ Holdings insurance units CBZ Life and CBZ Insurance were profitable during the first half year period ended 30 June 2017, at the same time adequately capitalized more than the proposed regulatory minimum.
Group chief executive officer Never Nyemudzo told an analyst briefing that CBZ Life core capital was $15.50 mln up from $13.50 mln same period last year while the capital cover was 7.8 times compared to 7.5 times in December 2016.
CBZ Insurance is capitalised at $5.9 mln which is above the regulatory minimum with capital cover of 3.9 times. During the period under review, both entities credit ratings were BBB+.
Nyemudzo said during the second half of the year, the group will expand insurance solutions to include Employee Benefits business and has also received regulatory approval to set up an innovative CBZ SME Pension Fund.
According to Nyemudzo, during the first half period, CBZ Life profit at $1.5 mln was flat on prior year level despite a marginal decline in total income at $3 mln compared to $3.2 mln in 2016.
Operating costs also declined to $1.5 mln from $1.7 mln in 2016 same period. However, total assets grew to $19.6mln from $19.3 mln in December 2016.
On other hand, CBZ Insurance profit for the period increased to $1 mln compared to $700 000 same period previous year, while total income surged to $2.2 mln from $1.8 mln during the first half of 2016.
Total assets also increased to $16.6 mln from $12.5 mln by December 2016.
Meanwhile, the Group’s after tax profit for the period increased 0.8% to $12 mln compared to $11.9 mln same period in 2016.
Net interest income went up 2.8% to $39,7 mln from $38.6 mln while non-interest income surged a massive 16.1% to $36.8 mln from $31 mln same period comparable.
Underwriting income however was 13.3% down to $3.9 mln from $4.5 mln same period prior year.
