adminnon-profitable and non-core local operations.
In a statement to shareholders for the interim period ended June 2011, the company said the strategy would result in an improved and more solid profit performance for the group in the period ahead.
During the period under review, TA showed revenues of US$30,8 million and a profit after tax of US$1,6 million.
About 90 percent of the profit after tax came from outside Zimbabwe operations as local business contributed only US$164 000 to profit after tax.
“The pleasing growth from regional business was tempered once again by tepid results from Zimbabwe operations.
“However, this does to some extent mask the improvements in the margins, capacities and operations of the Zimbabwean companies, which have now for the most part demonstrated their ability to be profitable in an extremely difficult economic environment,” said the company.
Sable Chemicals made revenues of US$21,9 million and a loss before tax of US$985 000 with TA’s share of losses being US$502 000.
Zimbabwe Fertiliser Company made losses of US$2,8 million with TA’s share being US$624 000. The decline in performance was largely due to increase in costs being above growth in revenues.
TA Holdings controls 100 percent of Zimnat Life, which experienced a decline in underwriting profit during the period under review due to rise in claims from 36 percent last year to 46 percent this year.
The group also owns 62 percent of Botswana Insurance Company, Cresta Zimbabwe 100 percent, Sable Chemicals and ZFC.
Other investments are in AON and PG Industries Zimbabwe Limited, which they control 15 percent held through Quest Ventures in Botswana and 100 percent of Grand RE.
TA also owns 54 percent of Lion Insurance and 35 percent in Cresta Marakanelo in Botswana.
During the period under review, the group’s insurance sector achieved a profit before tax of US$4,3 million against US$3,9 million achieved for the same period last year. The increase in profitability was largely a result of underwriting profits at all insurance companies except Lion Assurance and fair value gains arising from the valuation of investment properties.
The group said the improved performance was a result of local insurance companies returning to underwriting profitability and an increase in the fair value adjustments of properties.
TA benefited most from a viable electricity tariff that was awarded to Sable Chemicals by the Government, a move that saw the company saving up to US$2,8 million.
Online Reporter