Diversified insurance group, Zimre Holdings Limited, is looking at leveraging on its regional operations and service delivery as one of its strategies for post Covid-19 recovery.

The pandemic has affected businesses across sectors, locally, regionally and at a global level on varying degrees.

As the pandemic is creating uncertainties to the economy, businesses all over are crafting measures to ensure sustainability and survival during and after Covid-19.

The pandemic has already caused turmoil as a result of disruptions to production and trade due restrictions to movement locally and regionally as countries closed borders to limit the spread of the disease.

For ZHL, its financial strength and regional operations are expected to work to its advantage.

The group has operations in Mozambique, Botswana, Malawi and Zambia which should help offset the effects of Covid-19.

"The impact of the Covid-19 pandemic on group performance is expected to be mild given the different responses to contain the disease and stimulate economic recovery in each country where the group has operations," said ZHL in a trading update for the first quarter of the current financial year.

Although Emeritus Re Mozambique's performance for the first five months of the year was trailing behind budget due to the existence of a soft insurance market and Covid-19 induced travel restrictions which impeded marketing activities, the operation is optimistic that business growth in 2020 will surpass the 2019 level and a reasonable profit achieved on account of the increasing contribution of the business from the external market particularly the niche markets developed by the company in Francophone and Portuguese speaking countries and cost savings emanating from reduced marketing activities.

Emeritus Re Malawi recorded gross premium of K1,85 billion (approximately US$2.4 million) as at 31 May 2020, which was above prior year performance against the backdrop of increased new business acquisitions in fire and motor portfolios.

Modest profitability is expected in 2020 despite the downside risks emanating from the Covid-19 pandemic outbreak on account of the control of expenses, sound underwriting and an anticipated favourable claims experience.

In Zambia, at K24,1 million (approximately US$1,3 million) for the five months ended 31 May 2020, gross premium written by Emeritus Re Zambia was in line with the budget and 55 percent above the business written in the same period in 2019 mainly due to the depreciation of the Zambian Kwacha.

Emeritus Re Botswana's performance was generally in line with budget in most key result areas and profitable on account of a favourable claims experience and implementation of cost containment measures.

Overall, group revenue in the first quarter was 638 percent above 2019 and 30 percent above budget. All the strategic group business units traded positively in the first quarter with comprehensive income closing the period at $72 million representing a growth of 453 percent on prior year comparable period. ZHL's will also focus on cost management accompanied by revenue enhancement measures, to ensure moderate profitability is achieved in 2020.

With no quick solutions in sight for the obtaining challenges to the business environment, experts contend diversification of revenue streams will be key in order to survive and ZHL is also tapping into that.

Like any other businesses, the insurance giant will also make use of technology to ensure smooth flow of operations and service delivery.

Copyright The Herald. Distributed by AllAfrica Global Media (allAfrica.com)., source News Service English