Zimre profit up nearly 50 percent

Zimre Holdings has posted a 63 percent growth in operating profit to $2.5 million driven by positive performance in reinsurance and general insurance units.

Zimre’s portfolio includes reassurance, short-term insurance, life reassurance and property. Total revenue dipped by 10 percent to $32.5 million but net profit at $1.25 million was 45 percent higher on the prior year.

Operating and administrative expenses went down by 22 percent but the group said it also lost $1.71 million due to restructuring an agro-industrial associate.

“Group profitability was, however adversely affected by the $1.71 million share of loss from an agro-industrial associate which is being restructured to improve future performance,” said Zimre chairman Benjamin Kumalo today.

Gross Premium Written (GPW) was 8.3 percent down to $38.5 million, driven by market contraction in the domestic insurance business.

Most of the group’s units performed negatively, with Life and Pensions’ profit before tax 40 percent lower to $1.28 million after experiencing a 170 percent increase in claims and a surge in finance costs.

Total assets marginally increased by four percent to $149.5 million.

The group did not declare a dividend citing a need to grow its capital base.-The Source

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