Staff Writer
Zimre Holdings Limited profit for the interim period to June 30, 2024 surged 52% to US$6,8 mln compared to US$4,5 mln in 2023 driven by robust revenue growth and effective cost containment.
In the period under review, the group achieved a 16% increase in total income, reaching US$15.0 mln, primarily driven by impressive growth in insurance contract revenue and substantial fair value gains from investment properties and equities.
Group chairman D Matete in a statement of the financials said the group’s insurance contract revenue surged 63% from US$19.3 million in June 2023 to US$31.6 million in June 2024.
“This robust growth was fuelled by impressive real business expansion in regional reinsurance units and the Life and Pension segment. Reinsurance operations accounted for 75% of revenue, with Zimbabwe and Mozambique being key contributors at 26% and 14% respectively,” he said.
He added that the Life and Pension continued to perform well at 22% contribution to revenue, while the short-term business unit showed signs of recovery at 3% contribution.
Matete said the regional expansion strategy is yielding positive results, with reinsurance operations in the region contributing 49% to total revenue.
During the interim period under review, group total assets reached US$204.1 million, reflecting a 20% increase and notably, the group maintained a strong cash position, generating US$10.6 million from operations, a 79% increase from US$5.9 million in the prior period.
The cash to profit ratio ended the period at 1.55 times against a benchmark of 1.2 times.
Matete however said ZHL remains positive that the measures the group has put in place, which cut across the different markets within which it operates, will ensure it remains relevant and profitable on a sustained basis.
He said relevance of the group’s value proposition will be maintained through digitalisation. “The Group’s B2C units have invested significantly into making the customer experience accessible, intuitive and seamless while preserving the human and relational touch that is vital and akin to our line of business,” said Matete.
In terms of sustainability Matete said through the Eagle REIT, the group is practicing what it preaches by applying ESG practices into its projects.
He said the group anticipates commissioning phase 1 of Mazowe Mall in Q4 2024 which project was not only built in a manner that is sympathetic to the environment but also addresses a number of social ills and peculiarities of the ecosystem already in existence within the surrounding community.
In order to maintain profitability, Matete said the creation of new markets through the anticipated listing of the Eagle REIT in Q4 2024.
“This listing aligns with the ethos of the group to make financial security instruments accessible to and therefore inclusive of all Zimbabweans,” he said.
Matete said with a history that spans over 40 years, the ZHL Group is posed to continue delivering on its promise of Security, Growth and Profitability and making a significant contribution in different facets of the economy to uplift the standard of living of the communities from where we derive value and growth.
