admin
Conrad Mwanawashe Business Reporter
ZIMRE Holdings’ premiums for the three months to September have not been growing but the group is looking to investments for a turnaround of fortunes in the last quarter. Group chief executive Albert Nduna told an analyst and media briefing for the six months to June that the last three months of the year will redeem the company’s performance. “Premiums are not increasing as we would like and we are looking at investments to turnaround the situation,” he said.
“The figures we are seeing for the three months to September are not that good. There is no growth situation,” he said.
Mr Nduna said Zimre will sell off non-core assets and other “glasses gathering dust on the shelf” as the group seeks to raise capital for consolidation.
He did not divulge details of the assets targeted for disposal but confirmed that negotiations were ongoing.
Zimre recorded a loss after tax of $0,11 million in the six months to June compared to a profit of $2,39 million in the same period last year.
“The group’s share of the loss on its agro-industrial associate operation of $1,01 million had a negative impact on the overall performance of the group,” the company said.
“Total comprehensive income as a result declined to a negative $0,72 million in 2014 from $1,58 million in the same period last year,” said Mr Nduna.
The group’s gross premium written (GPW) was flat at $41,23 million in the period under review with domestic operations contributing 52 percent of GPW compared to 60 percent in the comparative period last year.
The reinsurance division contributed $17,46 million in GPW in the six months to June compared to $19,77 million in the same period last year and an operating loss of $1,54 million compared to an operating profit of $0,31 million achieved in 2013.
The property division recorded total revenue of $2,54 million compared to $2,90 million for the comparative period while the general insurance GPW was at $22,63 million, six percent higher than the $21,43 million recorded in the same period in 2013.
Reassurance was the star performer for the group, posting a GPW growth of 19 percent to $2,80 million in the first half to June from $2,35 million in the prior year.
Insurance broking declined 10 percent to $0,75 million from $0,83 million.
Mr Nduna said the group is in talks with external partners with a view to set up a special purpose vehicle to pump its muscle ahead of entering bigger markets.
The group is focusing on the Nigerian market and Mr Nduna said it prefers a model of up to 30 percent shareholding plus management contract in the new markets.
Nigeria has a Gross Domestic Product of $510 billion with a penetration ratio of 0,5 percent and only two re-insurers.
“There is one deal which we expect to close before the end of the year in our capital raising initiatives,” said Mr Nduna.
Online Reporter