ZIMRE Holdings operating profit improved to $1,6 million in the full year to December from a loss of $2,2 million in the previous year due to lower claims but will sell-off non-performing assets and non-core investments to refocus its business.
Gross written premiums (GWP) were flat at $77 million and local operations accounted for 57 percent from 53 percent in 2012, with Malawi, Zambia and Mozambique contributing 21 percent, 11, percent and five percent.
“Group reinsurance operations adopted a deliberate strategy of writing only collectable and profitable business in order to improve liquidity and profitability,” said the company in the financial results published on Friday.
Comprehensive income stood at $11 million with $10,2 million attributed to share of the revaluation of land in one of the group’s key associate companies following the incorporation in 2012 of the land into the greater Harare municipal boundaries.
The land is being developed into high density residential stands.
Zimre’s financial position grew to $154,9 million up from $138 million in 2012 while shareholder funds grew from $47 million to $55 million.
The company said it would undertake a capital raising exercise to enhance underwriting capacity, improve liquidity and working capital across its operations.
“The group is also restructuring its portfolio with a view of disposing of non-performing and non-core investments. Wide ranging cost-cutting measures are also being implemented to enhance operational effectiveness and profitability,” read the statement.Advertisement