BUOYED by a strong performance in 2024, Emeritus Reinsurance is confident of achieving better results in 2025, with a projected minimum growth of 10% and an expanded portfolio of innovative insurance products.
Emeritus managing director, Tarupiwa Tarupiwa told businessdigest that the firm remained optimistic despite the economic uncertainties.
“Our trading performance so far has been strong, though it is important to note that we are not immune to the challenges affecting the economy,” he said.
Zimbabwe’s economy is currently going through a tough period, characterised by high inflation, a liquidity crisis, power outages, and exchange rate volatility.
“Globally, economic volatility and uncertainty have had an impact, as insurance demand is closely tied to economic performance. When the economy struggles, insurance, much like banking, is often the first to feel the effects,” Tarupiwa said.
“We have also been affected to some extent by the global decline in commodity prices, which has influenced international commodity prices. The mining industry, which we heavily insure and reinsure, has also faced challenges.”
However, he said overall, they performed very well in 2024.
“In 2025, we remain optimistic about achieving even better results. In fact, we have introduced new products, such as cyber insurance, political violence cover, and medical gap cover, among others, to strengthen our business offerings,” Tarupiwa said.
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“We are still experiencing some shocks due to the ongoing economic uncertainty that has characterised the beginning of 2025. While there is significant noise in the economy, our outlook remains positive. We anticipate growing by a minimum of 10% in 2025.”
In 2024, the Zimbabwean operations achieved an income of about US$22 million, with over 90% of this revenue denominated in US dollars.
“This has provided us with some cushioning against local economic challenges,” the Emeritus managing director said.
However, he noted that the company faced difficulties on the investment side, as the economic environment led to very low investment returns.
“Additionally, the change in currency and the subsequent devaluation of the ZiG (Zimbabwe Gold) last year resulted in significant exchange losses, particularly in equity investments and revenue received in local currency,” Tarupiwa said.
“We are now concerned about the uncertainties arising from the economic turbulence, including discussions around a monocurrency. The prospect of a monocurrency is unsettling and further erodes public confidence in the insurance industry.
“People are hesitant; those who might have purchased policies are scaling back. This affects not only insurance sales but also investments, creating a ripple effect across the entire insurance value chain,” he added.
Tarupiwa said their regional spread provides significant benefits. While some of the economies in which they operate are also facing challenges, such as inflation, their diversified presence helps mitigate these risks.
Emeritus Reinsurance, a 100% subsidiary of Zimre Holdings Limited, has a physical presence in Zimbabwe, Mozambique, Malawi, Botswana, Zambia, and Malawi. Additionally, the company conducts business in many other African countries.
