ZIMRE HOLDINGS LIMITED(ZHL), the country’s diversified investment holding company has registered a growth in revenue by 68% and 799% above the prior year.
In the third quarter of 2020, the group operated in an environment with COVID-19 and hyperinflationary which pushed up claims and operating expenses.
In a statement by the company secretary, Lovemore Madzinga, the company’s total revenue as of the end of Q3 2020 was 68% and 799% above prior year performance in inflation-adjusted and historical terms respectively.
“The performance was driven by a 68% growth in insurance revenue (801% in historical terms), 137% growth in rental revenue (968% in historical terms) and 10% growth in revenue from the sale of inventory property (653% in historical terms) and property revaluation gains.
“In Malawi, Gross Premium Written (GPW) for the first 9 months of the year grew by 10%, 9% in Mozambique, 134% in Botswana and 77% in Zambia,” he said
Madzinga added that the company also experienced continued growth and profitability of the domestic reinsurance and reassurance operation driven by increased treaty participation from top tier cedants; strong balance sheet and superior credit ratings, successful consolidation of key business accounts, and business sourced from the external market supported by a growing external claims fund.
Credit Insurance Zimbabwe Limited (Credsure) GPW grew by 106% and 742% compared to the same period prior year in inflation-adjusted and historical terms respectively.
“The growth was supported by the new business acquired during the period. The combined profit increased by 32% in inflation-adjusted terms or 2090% in historical terms on account of revaluation of property and equity investments,” Madzinga said.
Madzinga said ZHL is now focused on extracting synergy driven performance from all its heartland business units as well as restructuring the property business.
“Cash generation, cost control, technology optimisation to enhance operational efficiency, and brand visibility will remain key performance drivers for the Group as it seeks to create long term value for all its stakeholders,” he said.
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