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 Business Reporter
LEADING insurer ZimRe Holdings Limited recorded an awesome 209 percent growth in profitability in the interim to June 2013 to overturn a US$1,4 million loss in 2012 into a US$1,5 million profit.The Zimbabwe Stock Exchange-listed insurance services group’s profitability increased markedly on the back of a 32 percent growth in the firm’s life assurance operations during the period under review.

This was despite the fact that total revenue for the group at US$24,7 million represented a 4 percent decline as revenue from short-term insurance, general insurance and insurance broking fell.

The insurance services group said the devaluation of the kwacha by Malawi, where ZimRe has some interest, and deliberate efforts to write only collectable and profitable business caused the decline.

“The majority of group operations performed well in the first half of 2013, despite the difficult operating environment.
“There was a marked improvement in profitability in the first half when compared to the same period last year,” said ZimRe Holdings chairman Mr Ben Kumalo.

After the strong financial performance in a largely liquidity constrained economic environment, ZimRe Holdings’ basic and diluted earnings per share improved from minus US0,28c to US0,11c.

Mr Kumalo said shareholders’ funds during the interim to June totalled US$47,5 million while total assets in the same period grew by 4 percent from US$118 million in December 2012 to US$123 million.

The life reassurance operations recorded commendable top line growth from US$1,8 million in 2012 to US$2,3 million this year, but its profitability was affected by high claims in the interim.

The short-term insurance business recorded a decline in gross premium from US$22,4 million last year to US$19,8 million this year due to selective underwriting to reduce his risk exposure.

Against this background, the business suffered a US$0,3 million loss in the period under review compared to a US$1,9 million loss recorded in the comparative period in prior year.

Gross premium written in the general insurance business came in at US$5,4 million compared to US$7,8 million in the same period last year due to devaluation of the Malawi kwacha.

However, general insurance operating profit in the first six months of this year improved from a loss of US$0,59 million in 2012 to a profit of US$0,29 million in the interim period this year.

The property business registered marginal increase in revenue from US$2,3 million last year to US$2,6 million while operating profit stood at US$1,6 million against US$1,5 million last year.

While the insurance business did not experience a decline in revenue as was the case with some operations the operation’s revenue remained flat at last year’s level of US$0,8 million.

Looking ahead ZimRe said that it would continue to scout for business opportunities in the emerging operating environment and remains confident of the group’s future financial prospects.