Bright Madera Senior Business Reporter
ZIMRE Holdings Limited will continue to offload  non-core and non-performing operations to concentrate on its core business of re-insurance. Group chairman Mr Ben Kumalo told shareholders yesterday at its Annual General Meeting that the group would dispose of such operations both on the domestic and regional markets.
Zimre has withdrawn from Genesis Investment Bank, which weighed down the group’s performance.
Genesis had become difficult to manage as the group was failing to derive value and profitability from the unit.
But the new shareholders of Genesis failed to capitalise the bank to meet the Reserve Bank of Zimbabwe capital threshold, prompting them to surrender the bank’s operating licence.
“The group will continue to review the performance of its investment and exit from those investments where prospects for capital growth are low,” said Mr Kumalo.
“The group is looking at expanding and securing its footprints in the regional markets to enhance revenue generation,” said Mr Kumalo.
Zimre owns 50,09 percent of listed property company ZPI, 32,9 percent of short-term insurer, Nicoz- Diamond, 17 percent of Fidelity Life and a 34 percent stake in conglomerate CFI.
Giving a trade update for the first quarter of the financial period ended March 31, 2012 group chief executive officer Mr Albert Nduna said Gross Premium Written increased 18 percent to US$21 million from US$18 million recorded to the same period in 2011. He said this projected a real growth of between 13 and 14 percent of premium written last year.
Domestic operations contributed 39 percent to revenues while 59 percent came from regional operations.
Mr Nduna said domestic performances showed a positive variance after contributing an average of 20 percent to revenue in past years.
During the period under review profitability was negatively affected by debtors prompting the group to embark on a massive debt recovery drive.
Mr Nduna said the group was on target to achieve a group premium budget of US$61 million by year-end.
“Debtors have become a real challenge in the face of liquidity challenges, thereby affecting profitability. The company has embarked on debt collection to recover what is due,” said Mr Nduna.
Profitability was also weighed down by the group’s unsatisfactory agro-business investments, which are already going through a restructuring exercise.
Mr Nduna said the process would be complete soon and the business should return to profitability.
During the AGM BDO Zimbabwe Chartered Accountants were appointed auditors for the year 2012, replacing Ernst & Young Chartered Accountants (Zimbabwe). Mr Kumalo said the appointment of          new auditors was in line with the company’s best practices.