ZIMRE HOLDINGS LIMITED
Diversified insurance group,
Chairman Mr Ben Kumalo attributed the growth to investment portfolio fair valuations following the change of the functional currency in
The period experienced challenges emanating from Covid-19 impacts on businesses, but the group put in place strategies for survival such as optimisation of technology.
"The outbreak of the Covid-19 pandemic forced the group to invest in and accelerate the digitalisation strategy, improve customer supply chains, augment existing internal and external communication as physical interactions were restricted.
"Business continuity plans implemented during the lockdowns ensured the continuous flow of business in all operating units. Demand for insurance and rental space remained buoyant notwithstanding trends in the rationalisation of space by tenants as most business was conducted from home during the lockdowns.
"There was a slowdown in property sales and increased pressure on occupancies on leased premises.
"The onset of hyperinflation in
"The tight liquidity situation in
Total comprehensive income came in at
At
The increase was mainly driven by the strong top-line growth in premium income in
According to the group, regional operations contributed 57 percent in gross premium written (GPW) in 2020 compared to 64 percent in 2019.
"The contribution mix is underpinned by the clawback in the Zimbabwean operations and the continued beneficial hedging effects of the regional operations," said
Total claims and expenses declined by 27 percent to
"In historical cost terms, there was an overall increase in claims and expenses due to exchange rate driven inflationary pressures experienced in the domestic economy.
"Management remains committed to keeping operating costs and technical expenses under control," said
During the proud under review, positive cash flows were generated from most operations mainly on strong business growth momentum achieved, leasing of space to quality tenants, implementation of premium warranty policies in certain markets and strengthening of the effects of moderate improvements in credit control functions in most business units.
Overall, the group generated cash of
Total assets rose 154 percent to
The group's financial position remained sound mainly due to the revaluation of investment properties and other non-monetary assets.
During the year under review, Zimre Property Investments Limited ZPI delisted in November after ZHL had achieved a 100 percent shareholding in the company as the group sought to consolidate its operations, strengthen the balance sheet and streamline operational costs in the face of mounting economic challenges.
Copyright The Herald. Distributed by AllAfrica Global Media (allAfrica.com)., source
