ZHL to capitalize Credsure…as group profits decline in H1, 2018
HARARE, Zimre Holdings Limited says it will strengthen Credsure capital base and operationalize Emeritus Reinsurance to raise capital for consolidating its regional footing as the company continues to implement its strategy premised on strengthening and realigning reinsurance, insurance and property operations for growth profitability, value preservation and cash regeneration.
Zimre Holdings Limited (ZHL) early this year started consolidating its reinsurance operations under Emeritus Reinsurance International, as it sought to innovatively grow its market share and profitability.
In the six months to June 2018 Emeritus reinsurance continued on a recovery path with GPW increasing by 23% to US$8 million from US$6,5 million in 2017.
Credsure recorded a 58% growth in GPW reflecting the positive impact of restructuring if the business that stated in 2018 when ZHL acquired a controlling stake in the company.
Zimre Board chair Benjamin Kumalo said the board would continue to implement the strategy adopted in February 2018 leveraging on the core business assets for business expansion and building a diversified and profitable investment portfolio.
“Measures being implemented to improve the group performance include strengthening and sustaining the upward business growth trajectory at Credsure through strengthening its capital base and accrediting more underwriting management agencies to increase and sustain the new business pipeline.
“Operational sing Emeritus International Reinsurance Company which will raise capital required to strengthen competitive capital positions in the Sadc region to support business growth.
Leveraging on innovative digital technologies to develop new business models, innovative insurance products and services that will position the operating companies for profitable growth,” he said.
During the period the group record mixed performance with domestic insurance and reinsurance operations continuing to show resilience and sustainable recovery following rebranding and rating upgrades.
Overall their performance was subdued due to a combination of factors including but not limited to the existence of soft insurance markets due to relatively low economic activity compared to previous previous trading periods, weakening of regional currencies against the us$ in some cases and relatively low capital bases which curtailed them form absorbing the existing insurance capacity.
The group recorded a profit of US$0,8 million compared to US$ 2,7 million same period last year
Grow premium written at US$ 15,8 million was in line with that achieved same period last year .
Total income declined by 14% to US$14,9 million from US$17,3 million mainly due to the impact of property portfolio Growth in the regional and domestic markets is expected to strengthen going forward buttressed by relative political stability, recovery of economic commodity prices on the international and growth in agriculture.
“This anticipated economic growth, coupled with low insurance penetration rates rapid urbanization and growing middle class is expected to use the growth of the insurance markets thereby presenting immense growth opportunities for the group.
In Mozambique, Malawi and Zambia in US$ owing to among other things the relatively economic activity in those market s and weakening domestic currencies in the period under review.” he said.
