aurora
Business Writer
Listed diversified financial services group, Zimre Holdings Limited (ZHL), reported a positive first quarter performance as it gears up to remodel its reconsolidated operations.
Last year, ZHL concluded transactions to bring Fidelity Life and Zimre Property Investments (ZPI) under its ambit, a move that significantly boosted its asset base.
“The group generated positive cash flows and experienced significant improvement in its bottom-line performance,” said ZHL in its Q1 trading update.
“Accordingly, income grew by 33 percent and 619 percent in inflation adjusted and historical cost terms respectively.”
The improved performance came notwithstanding a difficult operating climate in both the Zimbabwe and Mozambique markets during the quarter just ended.
“Despite the challenging business environment local operations sustained an upward business growth trajectory while the regional reinsurance operations felt the impact of the reduced business activity due to Covid-19,” said management.
“The Mozambique operation continue to weather the negative impact of terrorist activities in the Cabo Delgado Province which threaten the country’s growth prospects for 2021.”
Fidelity operates three insurance businesses, Fidelity Life Assurance, Vanguard Life Assurance and Fidelity Funeral Services.
It also has several other subsidiaries involved in the provision of micro-lending, medical aid, asset management, actuarial services as well as property development.
Management said it is now working to align its businesses.
“Internally, the attainment of 100 percent shareholding of Zimre Property Investments Limited and its subsequent delisting as well as the acquisition of majority interest in Fidelity life Assurance of Zimbabwe Limited, has reconsolidated the group’s heartland investments.
“ZHL looks forward to restructuring and remodelling the business portfolios in line with its new DNA which places emphasis on sustained value creation through cash generation, customer focus, and change management.”
Bongani Ndlovu