ZHL to hedge on regional investments
Staff Writer
ZMIRE Holdings says it plans to solidify its regional investments and improve their underwriting capacity through continuous capital injections as it seek to hedge against country risk.
In addition, the group said it will be pursuing new markets within the region, harvesting its insurance value chain, and broadening its ecosystem through group synergies and various partnerships locally and across the African continent.
“Consolidation of the Group’s regional reinsurance cluster under Emeritus International Reinsurance has entered its final phase following the approval of the amalgamation of Emeritus Re-Botswana into Emeritus International Reinsurance.
“This move is set to encourage the injection of additional competitive capital into the regional reinsurance units, enabling them to further expand the Emeritus brand throughout the African continent,” the group said in an update for the period to September 30, 2023.
It said regulatory approvals to inject capital into Emeritus Re-Mozambique were secured in June 2023, and the recapitalization program will help the unit scale up its underwriting capacity, ensuring that there is more control over the wallet and cash productivity to generate positive shareholder returns.
Re-insurance remains ZHL’s core business, and it maintains key investments in direct short-term insurance.
In the quarter under review, the Reinsurance and Reassurance cluster posted impressive growth in insurance contract revenue in inflation-adjusted terms of 129 percent at $61,4 billion from $26,8 billion and 623% growth in historical cost terms at $37,6 billion from $5,2 billion emanating from new business acquisitions through various developmental projects in the local market.
“The regional operations’ strategy to participate in targeted external markets and big accounts paid off, contributing to this jump in insurance contract revenue for the period,” the company said.
ZHL said the hybrid business model employed by the short-term insurance cluster has begun to register an increase in direct business composition from 33% to 58% as of September 30, 2023.
“This increased the underwriting capacity of the operation and expedited the insurance contract revenue growth by 72 percent from $1,8 billion to $3,1 billion in the current period in inflation-adjusted terms.”
To ensure its progress is continuous, the company is restructuring and building capacity for organic growth through the introduction of new businesses such as employee benefits, healthcare, and diversifying its agricultural offerings.
