Chronicle Editor
Sikhulekelani Moyo, [email protected]
DIVERSIFIED financial services group, Zimre Holdings Limited (ZHL) has recorded a revenue growth of 5 percent in 2024 to US$31 million from US$29,4 million in the same period in 2023.
In a statement accompanying the group’s 2024 third quarter trading update, the company secretary Ms Ruvimbo Chidora said the growth was on the back of increased new business acquisitions and business expansion from both local and external markets.
She said the cluster continues to pursue its journey into Africa to penetrate the rest of the continent to further enhance the insurance revenue streams.
“The short-term insurance cluster posted an impressive growth of 41 percent in insurance contract revenue to US$1,8 million from US$1,3 million recorded same period the prior year,” she said.
“This significant growth was driven by a strategic shift in focus towards core direct business, resulting in enhanced underwriting capacity, particularly in bonds and guarantees, which now account for 54 percent of total business underwritten, a substantial increase from 7 percent in 2023.
“The property cluster generated a total income of US$1,9 million, a 16 percent growth from US$1,6 million in the prior period. This robust growth underscores the cluster’s resilience and appeals as a value-preserving asset class.”
During the period, Ms Chidora said the portfolio registered a collection rate of 94 percent, while occupancy levels averaged 86 percent despite the subdued demand for CBD office space.
She said the insurance broking business experienced a 3 percent decline in net brokerage income to US$820 000 from US$842 000, due to slower account renewal rates.
However, she said the business is poised for growth through strategic partnerships aimed at diversifying revenue streams.
Ms Chidora also said total income increased by 7 percent to US$22,6 million from US$21,1 million emanating from the growth in insurance contract revenue, non-insurance income growth, and positive investment income mainly fair value gains from investment properties following portfolio and strategic acquisitions during the year.
She said all the group businesses contributed positively to total income growth except for the insurance broking business and the reinsurance business operations in Malawi which was impacted by the depreciation of the Malawian Kwacha.
“The group recorded a 56 percent growth in profit for the period to US$9,8 million from US$6,3 million. Profit was driven by growth in the topline and investment income compared to the same period the prior year with all key business units achieving profitability,” said Ms Chidora.
She said total assets of US$193,2 million grew by 14 percent from US$169,3 million, spurred by an increase in investment properties and financial assets.
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