Regional markets boost Emeritus
HARARE, Successful consolidation and claw back of participation on key group life business accounts and USD denominated business from the external market saw Emeritus ending the 5 months to May 2020 on a strong footing.
In a trading update, Zimre holdings, said despite the exchange rate distortions that fueled increases in claims, the claims ratio of 37% achieved was within industry benchmark levels.
RE Emeritus Re Zimbabwe’s market share (16%), continued to grow on account of increased treaty participation averaging 17% in 2020 from top tier cedants attracted by a relatively strong balance sheet, service excellence, improved credit ratings, the existence of an offshore claims fund to mitigate foreign exchange risk, and brand acceptance.
Gross premium written as at 31 May 2020 at ZWL$103 million (historical cost basis), was 24 % above the budget and 877% above actual performance for the same period in 2019.
“The operation was on course to meet its top and bottom-line performance targets for the year. Emeritus Life and Health Division, which enjoys a dominant market share (52.48%) achieved gross premium income of ZWL$15.2 million as at 31 May 2020 which was 12% above the budget for the first half 2020 and 383% above prior year performance.
The improved performance was achieved on the backdrop of the successful consolidation and clawback of participation on key group life business accounts and USD denominated business from the external market.” said Emeritus.
At 9,3% of GPW, Zimre said the claims ratio was favorable, and no Covid-19 related claims had been incurred as at 31 May 2020.
Another Zimre Holdings Unit ,Credsure’s market share at 3%, continued to firm up on account of growth in premium income from specialized products especially tobacco, infrastructure sector and benefits of adopting the UMA business acquisition model.
However, the Covid-19 outbreak, the depreciating currency and high inflationary environment impacted negatively on claims and operating expenses putting pressure on bottom line performance.
The rebranding activities and adoption of e-marketing and electronic business service delivery channels are expected to enhance performance.