Zimre Holdings recorded a profit of $2.7 million from January to June 2017 compared to $200 000 in the same period last year driven by an improved performance of its reinsurance and general insurance units.
Total income increased from $15.2 million in the same period last year to $15.7 million.
Zimre’s portfolio includes reassurance, short-term insurance, life reassurance and property.
Gross Premiums Written (GPW) declined 3.2 percent to $15.7 million, on the back of a contraction in the domestic insurance business.
Claims declined 10 percent to $3.4 million.
“Profit for the period increased by 1137 percent mainly due to the adoption of improved underwriting standards, increased retention, a 69 percent growth in investment income, the positive spillovers from the restructuring and implementation of cost containment measures,” said group chairman, Ben Khumalo.
Operating and administrative expenses were down 3.8 percent from $6.1 million to $6.3 million.
The property business reported a 22 percent decline in revenue to $1.5 million as a result of reduction in rental rates and falling occupancy levels and reduced uptake of stands due to low disposable incomes.
Cash and cash equivalents declined by 30 percent from $11.1 million to $7.8 million.
Total assets increased marginally to $105 million.
The group did not declare a dividend. – The Source