Zimre Holdings Limited (ZHL) Gross Premium Written (GPW) for the year ended December 31, 2021 grew by 53 percent to $5,2 billion from $3,4 billion in the prior year largely as a result of a restructuring.
ZHL group chairman Benedict Kumalo said in a statement of the financials that rental income contributed three percent to the group’s total income at $294 million from $144,1 million in the prior year.
“The increase was in spite of disparities in growth of investment property values and rental income as well as a direct consequence of the anticipated cost saving from de-listing the group’s property arm,” he said.
He said during the year under review, the group made a concerted effort to implement appropriate responses to the Covid-19 pandemic.
“These responses included robust initiatives to investments, resulting in notable growth in investment income of 269 percent to $171,6 million,” he said.
He added that among the key responses were prudent and tough decisions on costs given both the pandemic and inflation in Zimbabwe.
ZHL began the process of restructuring and repositioning itself in 2021 to include wealth creation and management both for its shareholders and the communities within which it operates.
This included the integration and reorganisation of Fidelity Life Assurance of Zimbabwe Limited to ensure the business focuses on core business, business acquisition and innovation.
The group also embarked on restructuring its property portfolio and initiating new strategies to ensure portfolio optimisation.
Meanwhile, total expenses for the year at $6,44 billion were a 186 percent increase from prior year and the cost to income ratio dropped from 50 percent to 41 percent, a creditable performance given the circumstances.
The group recorded a profit of $2,8 billion compared to $1,6 billion in 2021 despite insurance benefits and claims increasing by 107 percent and operating and administrative expenses growing by 502 percent.
Mr Kumalo said ZHL acknowledged the difficult operating environment and notwithstanding that the group will continue to pursue its new DNA of being a financial services group with core competencies in Insurance, property and wealth management.
He said that the strategy will be anchored by robust investment initiatives, continued consolidation of operations to capitalize on economies of scale while eliminating duplication of costs, and exploring strategic partnerships both locally and regionally to enhance its market presence.