Published: 27 September 2013

INSURER ZimRe Holdings Limited recorded an awesome 209 percent growth in profitability in the interim to June 2013 to overturn a $1,4 million half year loss in 2012 to a US$1,5 million profit.

The Zimbabwe Stock Exchange listed insurance services group's profitability increased markedly on the back of a 32 percent growth in firm's life assurance operations in the period under review.

This was despite the fact that total revenue for the group of $24,7 million represented a 4 percent decline as revenue from short term insurance, general insurance and insurance broking fell.

The insurance services group said the devaluation of the Malawi Kwacha, where ZimRe has some interest, and deliberate efforts to write only collectable and profitable business caused the decline.

"The majority of group operations performed well in the first half of 2013, despite the difficult operating environment. There was a marked improvement in profitability in the first half when compared to the same period last year," said ZimRe Holdings chairman Mr Ben Kumalo.

In light of the strong performance in a largely liquidity constrained economic environment ZimRe Holdings' basic and diluted earnings per share improved from minus 0,28c to US0,11c.

Mr Kumalo said shareholders' funds during the interim to June totaled $47,5 million while total assets in the same period grew by 4 percent from $118 million in December 2012 to US$123 million.
- herald

You might also want to read this

• Zimre records US$1,42m loss after property arm restructuring
• Zimre conversion to boost revenue growth
• Complex shareholding stalls Zimre bundling
• Zimre injects $2m into Credsure
• ZHL bounces back to profitability
• Zimre begins work on $13m Victoria Falls complex
• Zimre to turn Nicoz House into students quarters
• ZPI sells Zimre Centre
• Zimre targets US$80m to cement capital base
• Zimre signs Pick n Pay as anchor tenant