Categories: Stories

Zimre profit up 508 percent

Reinsurance group, Zimre Holdings, had a good first half despite problems that bedeviled the country such as high levels of inflation, uncontrolled monetary growth, foreign exchange shortages, high unemployment and supply bottlenecks.

Its gross premium increased by 632 percent from $5.8 billion to $42.2 billion while investment income soared 544 percent from $1.4 billion to $9.3 billion. Total revenue was up 623 percent from $7.2 billion to $52.2 billion.

Operating profit increased from $1.4 billion to $9 billion, an increase of 536 percent while net profit rose from $657.4 million to $4 billion.

The company says its investment income was boosted by the bull run on the Zimbabwe Stock Exchange. Negative returns on the money market, however, remained an area of concern.

It said 91 percent of its gross premium was from its short-term business sector. Zimre is restructuring its domestic operations. Fidelity was demerged and listed on the Zimbabwe Stock Exchange in June.

It is reviewing its regional operations to reduce the impact of the volatility of the Zimbabwean economy and raise the foreign currency requirements of its subsidiaries.

It says Zimre South Africa continues to under perform largely because of inadequate capitalisation. There are moves to recapitalise the operation.

(19 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024