ZNCC broadens horizons

premium debtors.
The loss was a significant knock from an operating profit position of US$3,2 million in the same period last year.
The group reported that it faced challenges in premium collection although Gross Premium Written for the period increased by 13 percent to US$32,1 million from the first six months of 2011.
ZHL reported that an amount of US$3,2 million was provided for doubtful debts during the period bringing its overheads to US$11,3 million compared to US$8,1 million in the corresponding period.
The company’s Malawi business was hit by the shortage of foreign currency and the devaluation of that country’s currency that increased volatility and exerted pressure on costs.
Foreign exchange losses arising mainly from
the translation of Malawi operations contributed to the negative total comprehensive income of US$3 million achieved in the period under review, compared to US$3,2 million during the same period last year.
In terms of sectoral performance, the group’s reinsurance business contributed 76 percent of the total GPW.
Reinsurance registered an operating loss of US$1,9 million compared to an operating profit of US$2,8 million in last year’s corresponding period.
ZHL attributed the loss to unfavourable claims experience and the provisioning for bad and doubtful premium debtors.
General Insurance achieved gross premium of US$7,8 million, which the company said was in line with figures recorded during the similar period last year.
The general insurance sector recorded an operating loss of US$600 000, double last year’s US$300 000 loss.
Finally, the company’s property business recorded total revenue of US$2,3 million compared to US$1,9 million registered in the same period last year.
The sector recorded an operating profit of US$1,5 million compared to US$800 000 in the prior year.