HARARE: ZIMRE Holdings Limited has recorded a profit of $1,1 million for the half year ended June 30, 2015 attributed to a decline in net claims. The profit was achieved after a loss of $50 000 during the same period last year.
In a statement accompanying the group’s interim results for the period ending June 30, board chairman Benjamin Kumalo said gross premiums were at $42 million, which was in line with what was recorded during the same period last year. Kumalo said the contribution of the domestic insurance and reinsurance operations to gross premium written was maintained at 53%.
Operating profit was maintained at $1,6 million. Total comprehensive income was a positive $1,2 million in 2015 compared to a negative $700 000 in 2014. During the period under review, shareholders’ funds increased by 38% to $63 million in 2015 from $46 million in 2014 due to the additional capital injected into the business in February 2015.
Total assets increased by 16% to $178 million in 2015 from $154 million in 2014. Commenting on group’s segment performance, Kumalo said, gross premium written for the reinsurance sector declined by 5% to $16,7 million from $17,5 million in 2014.
Life reassurance gross premium written increased by 7% to $3 million in 2015 from $2,8 million in 2014. General insurance gross premium written recorded a growth of 6% in 2015 to 23,6 million compared to $22,2 million in 2014. Property total revenue achieved a decline of 16% to $2,1 million compared to $2,5 million in 2014.
Kumalo said in line with the minimum capitalisation levels for reinsurance companies from $1,5 million to $5 million, the group domestic insurance and reinsurance operations adequately capitalised beyond the new proposed thresholds. Kumalo was optimistic on the outlook.
“The local insurance industry has, in the past, shown resilience and is expected to register growth in 2015. The group expects to remain profitable and grow market share in all its sectors in the short to medium term underpinned by improved liquidity in the operations, increased confidence and the cost cutting measures being implemented. The ongoing restructuring of the agro-industrial operation, is expected to unlock value for shareholders.” Kumalo said.
