November 18, 2024
Regional operations boost Zimre
ZIMRE Holdings Limited (Zimre)’s total income increased 11 percent to $2,8 billion during the year ended December 31, 2020 driven by strong top-line growth in premium income in Mozambique and Botswana.
The diversified group said its regional diversification strategy became handy in 2020 as the impact of the outbreak of the Covid-19 pandemic on group performance was less severe as different fiscal and monetary interventions in each country where the group operates were implemented to mitigate the effects of the pandemic.
“The increase was mainly driven by the strong top-line growth in premium income in Mozambique and Botswana as the units consolidated their respective market positions, the growth in rental income with the coming on stream of property space with high rental yield and the upward reviews of rentals as well as property revaluation gains following the change of functional currency,” Benjamin Kumalo, Zimre’s board chairman said.
He said the regional operations contributed 57 percent in gross written premium (GWP) in 2020 compared to 64 percent in 2019.
Zimre sustained growth in profitability, registering an increase of 107 percent in profit to $983 million for the year from the $475 million registered in 2019.
The group’s total claims and expenses declined by 27 percent from $1,9 billion in 2019 when compared to the $1,4 billion registered in 2020 driven by an overall decline in operating expenses, acquisition costs and claims.
In historical cost terms, there was an overall increase in clams and expenses due to exchange rate driven inflationary pressures experienced in the domestic economy.
Total assets grew by 154 percent to $12,5 billion in 2020 from $4,9 billion recorded in the prior period.
Zimre’s financial position remained sound mainly due to the revaluation of investment properties and other non-monetary assets.
Shareholders’ equity at $5,1 billion as at December 31, 2020, grew by 98 percent from $2,6 billion in 2019.
Zimre generated cash of $4,8 billion from operations during the year ended December 31, 2020 which was 336 percent up from the comparative period in 2019.
