Reinsurance group, Zimre Holdings, had a good first half despite problems that bedeviled the country such as high levels of inflation, uncontrolled monetary growth, foreign exchange shortages, high unemployment and supply bottlenecks.
Short-Term insurance company NicozDiamond says the industry is now bedevilled by under insurance so policyholders will have to battle to keep track of the spiraling price increases.
TA Holdings, which has just completed its restructuring exercise to focus on business with high growth potential, high margins and currency hedging, saw its net profit soar by 861 percent in the first half of this year.
Zimnat Lion Insurance Company, another short term insurance firm, has decided to expand into the region to cushion itself against the present negative macro-economic environment, which it says is not expected to improve in the short term.
The strengthening of the South African rand against major currencies, particularly the United States dollar and the pound sterling, helped boost global insurance giant Old Mutual’s earnings in sterling during the first half of this year.
Premier Discount Company which started operations at the beginning of this year made a profit of $111million in the first half of this year, and it says despite the economic challenges the country is facing, prospects for the second half are encouraging.