Zimre premiums up by 18 percent

Zimre Holdings has accrued a profit increase of eighteen percent to USD 21 million for the first quarter ended March 31, 2012.

In the previous period, the Zimbabwe Stock Exchange-listed and diversified company posted a premium of US$ 18 million.

Speaking at the company’s 14th Annual General Meeting in the capital today, Group Chief Executive Officer, Albert Nduna said the company’s performance for the first quarter was pleasing.

“During the quarter ended 31 March 2012, the Group recorded Gross premium of $21 million which was 18% ahead of $18 million recorded same period last year which is a real growth of 13/14%, and is 40% of premium written in the whole of 2011. The contribution to Revenue by local operations improved from 39% last year to 42% this year, and 58% coming from the regional operations. This resurgence of the Domestic performance is testimony that the Zimbabwe economy is growing and recovering from those days it was contributing a mere 20% to Group Revenue,” Nduna said.

He said total claims and expenses were contained and were 2% below that of the same period last year. There was serious determination in ZIMRE to manage expenses while increasing business generation.

Debtors, however, had become a real challenge in the market due to the tight liquidity conditions prevailing. The profit performance for the quarter was actually affected by the conservative Debtors provisioning. The group had embarked on an aggressive Debtors collection, Nduna added

He said that the Group’s Performance was affected by the unsatisfactory performance from the Group’s Agro Industrial operations which needed restructuring and re-capitalisation.

Reinsurance operations remain core to the Group Operations with 75% and 67% Revenue and Operating profit respectively now coming from that sector. The Group was confident of meeting its 2012 Group Premium budget of $61 million and to achieve the budgeted profit and declare dividends.

“The ZIMRE share performance has been stable rising by 10 to 25% this year, and we hope with the improving company performance, that will also be reflected in the share price so that shareholders will be rewarded both ways. I want to believe that a ZIMRE share is a good share – backed by strong fundamentals," said Nduna.

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