Staff Writer
Zimre Holdings (ZHL) strategy remains anchored on delivering a strong cash wallet through driving a cost-effective insurance float and increasing the contribution from regional investments.
The group will also continue to consolidate on its experience and dynamism and enhance market share acquisition through innovations.
“In regional operations, this will be done by upscaling their balance sheet and effective deployment of competitive capital across all strategic business units,” said Desmond Matete, the group’s chairman in the company’s 2023 financials.
Matete said the group’s property portfolio will tilt towards high yielding commercial and retail sectors through near liquid investment structures.
He said the group’s Eagle Real Estate Investment Trust (REIT) attained Prescribed Asset Status from the Insurance and Pensions Commission of Zimbabwe (IPEC) post the reporting period.
“It is anticipated that the Eagle REIT will bring much needed liquidity to the real estate market especially for Zimbabwe’s pensions community.
“As a conscious member of society, ZHL is determined to bring high impact sustainable investment opportunities to the public,” said Matete.
He added that the group will continue to consolidate on its experience and dynamism to enhance market share acquisition through innovations and new tools that embrace customer centric ecosystems which will create new value and change for its stakeholders.
“This will be buttressed by significant investment in technology platforms that enhance customer interface with our business and an enduring experience engendering long term customer loyalty,” he said.
During the year under review, the group’s profit increased by 321 percent from $72,4 billion to $304,9 billion in inflation adjusted terms and a 767 percent growth under historical cost terms soaring to $528,1 billion.
Matete said across all key lines of business, including reinsurance and reassurance, short term insurance, life and pensions, real estate and wealth management, the business witnessed exceptional profitability in real terms throughout the year 2023.
He noted that that group is in a strong financial position with real growth in total assets and cash generation.
“The group’s healthy balance sheet position is evidence of its resilience and commitment to provide its stakeholders with Security, Growth and Profitability.
“Net cash generated from operating activities increased to $147,7 billion resulting in the net cash generated to operating profit ratio of 1.42 times an improvement from 0.93 times,” said Mr Matete.
He added that cash generated has been applied to build up the cash wallet for the group for future growth.
During the period under review, insurance contract revenue experienced a remarkable increase of 140 percent, reaching $255 billion from $106,3 billion and was in historical cost achieved a growth of 779 percent with the revenue surging from $16,8 billion to $147,5 billion compared to the same period in the previous year.
“This strong growth is attributable to the group’s local reinsurance and pensions business operations, which collectively contributed 78 percent to the total premiums written during the year.
“The premium income growth was primarily driven by the expansion into new markets, the introduction of innovative product offerings and increased new product acceptance by the market,” said Matete.
In addition, Matete said the regional reinsurance business operations contributed to the overall insurance contract revenue, with premiums accounting for 17 percent of the total premium inflows, stemming from new business acquisitions and increased external business support.
