ZB Financial Holdings says regional expansion for ZB Reinsurances has been delayed by COVID induced slowdowns but the imitative is now at an advanced stage.
Staff reporter
However the local unit saw up to 6,8 % foreign sourced premiums in the half year ended June 30 2020 from 3,3 % same period last year as the reinsurance company maintained strong relations with regional partners on the back of a solid reputation and credit rating.
ZB CE RON Mutandagayi yesterday said growth in reinsurance premiums was also driven by the movement in exchange rates.
The insurance claims ratio softened to 24% in HY20 compared to 49% in HY19 with the improvement being partially explained by the general slow-down of business and social activity as a result of the COVID-19 lockdown while the technical expenses ratio remained at an acceptable level despite an increase from 78.8% to 86.6%.
On the other hand ,life assurance premiums were affected by the reduction in household disposable incomes as inflation rage.
Net assurance income was reduced by 58%, saddled by a 56% decrease in gross premiums which was partially offset by a 53% decrease in policy benefits reassurance premiums and business mobilisation commission expenses.
Policy surrenders increased by 223% as household income levels deteriorated due to a increasing inflationary trend and national lockdown.
The ratio of assurance expenses to premium remained acceptable at 42.9% in HY20, having moved from 40.6% in HY19..
Overall, the group’s profit improved by 375% to ZW$1.13bn in HY 20 from ZW$237.8m in HY19 20 resulting in the EPS increasing by 239% from ZW179c to ZW607c whilst the ROE improved from 23% to 49% over the same period
