Zimre Holdings Limited says its regional expansion strategy has started yielding positive results, with reinsurance operations in the region now contributing 49% to total revenue.
The group operates in Zimbabwe, Botswana, Malawi, Zambia, and Mozambique.
“The group's insurance contract revenue surged 63% from US$19,3 million in June 2023 to US$31,6 million in June 2024,” Zimre chairperson Desmond Matete said in a statement attached to the group's financial results for the half-year ended June 30, 2024.
“This robust growth was fuelled by impressive real business expansion in regional reinsurance units and the life and pension segment. Reinsurance operations accounted for 75% of revenue, with Zimbabwe and Mozambique being key contributors at 26% and 14%, respectively.”
Life and pension continued to perform well, contributing 22% to revenue, while the short-term business unit showed signs of recovery with a 3% contribution.
“The regional expansion strategy is yielding positive results, with reinsurance operations in the region contributing 49% to total revenue,” Matete said.
He noted that the group achieved a 16% increase in total income, reaching US$15 million. This was primarily driven by growth in insurance contract revenue and substantial fair value gains from investment properties and equities.
“The group posted a profit after tax of US$6,8 million, representing a 52% growth from US$4,5 million in 2023. This was driven by robust revenue growth and effective cost containment,” Matete said.
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“This strong performance was underscored by profitability across all subsidiary operations.”
During the period, total assets reached US$204,1 million, reflecting a 20% increase. Notably, the group maintained a strong cash position, generating US$410,6 million from operations.
The cash position marked a 79% increase from US$5,9 million in the prior comparative period. The cash-to-profit ratio ended the period at 1,55 times, exceeding the benchmark of 1,2 times.
The growth in insurance contract revenue and substantial fair value gains from investment properties and equities drove this.
“The group is heavily invested in the insurance value chain, not only in Zimbabwe but also within the Sadc sub-region,” Matete said.
The Zimre chairperson revealed plans to use regional units to expand further into the North African market. This would exploit policy frameworks and enabling protocols of the African Continental Free Trade Area.
Additionally, plans are underway to restructure regional operations' balance sheets to augment underwriting capacity and competitive capital.
“The relevance of the group's value proposition will be maintained through digitalisation, sustainability, and profitability,” Matete said.
