Re-branded Emeritus Re Zimbabwe lifts ZHL in five months to May 2018

Re-branded Emeritus Re Zimbabwe lifts ZHL in five months to May 2018

By Insurance24

HARARE – Zimre Holdings Limited gross written premium for the five months to May 2018 increased 9% to $14.4 mln largely driven by rebranded Emeritus Re Zimbabwe.

Chief executive officer Stan Kudenga told shareholders yesterday that Emeritus Re Zimbabwe is now profitable and continues to grow.

On other hand, restructured Credsure has begun to yield fruits and has recorded 50% growth in GPW, 47% growth in total revenue and 233% increase in profitability.

“It continues with its restructuring and the implementation of an underwriting management model, which is a first in Zimbabwe,” said Kudenga.

During the period under review, Group’s total revenue at $13.5 mln was 5% lower than same period last year comparable largely as a result of a slow start during Q1.
“There was below expectation performance of the regional operations that are conducting business in soft insurance markets and the companies are also operating with low capital bases,” he said.

He added that the frequency and high severity of claims in some of the regional markets particularly Mozambique also contributed to the subdued performance on group profitability.

While, foreign business contribution to revenue was lower, contribution by the domestic division increased to 64% as compared to 58% recorded in prior year.

Elsewhere, Kudenga said property subsidiary Zimre Property Investments (ZPI) experienced a slow start during the beginning of the year in terms of rental income growth because of the slow take-off of their expansion schemes.

The company embarked on massive expansion projects which at the moment are slowly returning but are expected to enhance rental revenue growth in 2019.

Overall expenses in the first quarter had been pushed by re-branding costs but Kudenga said the group is confident of surpassing its 2018 performance targets.

Kudenga said the group is looking to list on the Botswana Stock Exchange, through operationalising its offshore company, Emeritus International Reinsurance Company to increase revenue incomes.