ZHL income up 160 percent

Conrad Mwanawashe Harare Bureau
ZIMRE Holdings Limited comprehensive income for the first quarter grew 160 percent from a negative position in the same period last year.

Local operations contributed 56 percent to the gross premium written.

ZHL group chief executive officer Albert Nduna told the group’s annual general meeting yesterday that the positive outturn was a result of favourable claims experience and the positive impact of the cost containment measures being implemented across the group.

“Gross premium written in the period under review was in line with that achieved in the same period last year despite the prevailing economic challenges,” said Nduna.

He said the group started the year on a very positive note with profit after tax for the first quarter registering a 200 percent growth compared to last year.

Nduna said the recapitalisation of the group at the beginning of the year has alleviated the liquidity pressures in the operations.

“This has led to a gradual restoration of customer confidence and the domestic and international credit ratings have improved from negative to positive.

“The recapitalisation and other business restructuring initiatives have provided the necessary platform for sustained business growth and profitability in the short to medium term,” said Nduna.

Nduna said the losses incurred at CFI continued to weigh down the group performance.

“The recent efforts to eliminate bank borrowings from the CFI balance sheet and inject liquidity into the operations is expected to address this situation,” said Nduna.