CBZ Holdings insurance units profitable in H1, 2018, as ratings also improve

CBZ Holdings insurance units profitable in H1, 2018, as ratings also improve

Walter Mapfumo

Staff Reporter

HARARE, CBZ Holdings insurance units net underwriting income for the interim period ended 30 June 2018 increased to $4,69 mln compared to $3,94 million same period last year.

Group’s total income for the period amounted to $93,16 million compared to $80,47 million in June last year.

A statement of the financials shows that the group’s insurance units CBZ Life and CBZ Insurance were adequately capitalized as well improved in terms of ratings. CBZ Life upgraded to A rating from BBB while CBZ Insurance improved to +BBB from BBB.

According to the group, gross insurance premium increased to $13,2 million in 2018’s six months from $11,2 mln last year same period.  Reinsurance increased to $4,2 mln from $3,6 mln.

During the period, the group had 153 000 insurance policies. However, the group indicated that Cyber security within the financial services group remains a bigger risk. As a result, the group has partnered VISA to improve safety of customer’s transactions.

Meanwhile, the Group declared an interim dividend of $2 589 740 or 0.50 cents per share. This declaration translates to a growth of 46.9% on the comparative 2017 interim dividend.

This was after the group achieved an after tax profit of $34,3 mln an increase from $11,95 mln same period prior year.

Chairman Noah Matimba said CBZ Holdings remains well geared to leverage its sizeable balance sheet, strong market presence, diversified business portfolio, strong credit ratings and investment in Research and Development (R&D) to pursue emerging opportunities and manage attendant threats from the operating environment.

“The Group is well positioned to continue investing its own capital, as well as working with like-minded institutions through joint ventures, syndications and strategic partnerships,” he said.