ZB Holdings net insurance earnings overturn loss position


ZB Holdings net insurance earnings overturn loss position

Staff Writer

ZB Holdings’ net insurance related earnings improved from a loss of ZW$0.003bn in 2020, to a profit of ZW$0.830bn in 2021, on the back of a 7% rise in gross premiums from ZW$1.845bn in 2020 to ZW$1.982bn in 2021.

According to the Group’s 2021 financials, insurance related expenses declined 38% to ZW$1.152bn in 2021 from ZW$1.847bn in 2020.

The group’s insurance operations are ZB Reinsurance and ZB Life Assurance. According to the financials for the year under review, ZB Reinsurance posted a profit after tax of ZW$0.447bn in 2021 compared to ZW$0.139bn in 2020.

Its total assets increased in real terms from ZW$1.349bn as at 31 December 2020 to close the year 2021 at ZW$1.861bn.

“The company maintained good relations with its cedants and retrocession partners during the year,” CEO S Fungura said in a statement of the financials.

He said expansion into the Botswana market is set to be finalised in FY2022, after the company managed to get an operating licence.

ZB Life Assurance posted a loss of ZW$0.028bn in 2021, compared to ZW$0.217bn in 2020.

Its total assets increased in real terms from ZW$5.235bn as at 31 December 2020 to ZW$5.888bn as at 31 December 2021.

Elsewhere, ZB Holdings noted that it discontinued operations of ZB Associated Services during the year under review.

It said the Group’s microfinance operation, which was launched in December 2020 and started trading in earnest in January 2021, continues to grow and contribute positively to the Group’s performance

For the year 2021, the Group recorded a 122% increase in total income from ZW$5.288bn in 2020 to ZW$11.736bn. This performance outturn was on the back of an improved non funded-income.

Banking commissions and fees contributed significantly, rising by 83%, from ZW$1.836bn in 2020 to ZW$3.366bn in 2021.

The fair value adjustments increased by 1 526% from ZW$0.218bn in 2020 to ZW$3.548bn in 2021 mainly as a result of improved performance of the Zimbabwe Stock Exchange and investment property valuations.

Net interest income registered a solid performance during the year 2021, rising by 212%, from ZW$1.060bn in 2020 to ZW$3.304bn in 2021.

“As the loans and advances book rose, loan impairment charges also rose by 37%, from ZW$0.453bn in 2020 to ZW$0.621bn in 2021. Resultantly, net income from lending activities rose from ZW$0.607bn in 2020 to ZW$2.683bn in 2021, a 342% increase.”