ZB Holdings net insurance premiums up 13% in H1 2017

ZB Holdings net insurance premiums up 13% in H1 2017

Insurance24 Reporter 

Harare – ZB Holdings says regional operations remain key to Group’s insurance units with 29% of reinsurance premiums earned from the region as at HY17 compared to 19% at HY16.

Chief Executive Ronny Mutandagayi told analysts that as regional operations remains key the strategy, establishment of physical presence in Mozambique has stalled on account of foreign currency shortages.

During the period, Net insurance underwriting income increased by 16%; reinsurance technical result increased by 5% as a result a better claims outturn whilst net life assurance income increased by 24% on improved premium collections.

Net insurance premium for the period amounted to $4.9 mln compared to $4.3 mln same period in 2016 while Gross premiums increased 4% whilst a better claims experience resulted in related expenses reducing 1%.

During the period under review, Net Reinsurance Income went up 5% to $1.93 mln from $1.84 mln while on other hand Net Life Assurance income also increased 24% to $3.mln from $2.4 mln same period last year. Net Underwriting income went up 16% to $4.93mln compared to $ 4.26mln HY2016.

During the interim period, ZB Reinsurance Limited was capitalized at $10.3 mln while ZB Life at $0.9 mln.

Overally  the groups’ profit in the half year   increased 38% to  $8.17 mln up from $5.94  mln same period last year with 97% on the profit  being attributable to  equity holders of the parent company.

ZB Life and ZB Re contributed $39 000 and $60 000 respectively while the bulk came from Banking which contributed $6.40 mln and other segments $0.77 mln.

Net income increased 13%  to $9.15 mln from  $8 mln same period last year on  the back of  improved  asset quality   and lower interest costs in tandem with  the managed shift  from wholesale  funding to   retail funding.