Zimre revenue jumps 138pc | The Herald

The Herald

Tapiwanashe Mangwiro Senior Business Reporter

Zimre Holdings revenue rose 138 percent to $3,78 billion, in historical terms, in the five months to May 2022 from $1,59 billion in the same period last year driven by strong performance across strategic business units.

Chief executive officer Stanley Kudenga told shareholders at the company’s annual general meeting (AGM) on Friday that the outturn demonstrated movement towards a point where 40 percent of revenue would be denominated in US dollars.

“As you know, we have got various exchange rates that one can indicate, but being a responsible operating citizen, we are using the official exchange rate to book our income,” he said.

The group’s domestic operations contributed 69 percent of the total revenue compared to a 2021 contribution of 73 percent.

Life and pensions and reinsurance operations led the contributions to the domestic operations at 46 percent and 39 percent respectively.

The group’s regional operations contributed 31 percent to total revenue with Emeritus Re Malawi and Mozambique weighing in with 36 percent and 28 percent to the total, respectively.

Kudenga said the regional economies where the company operates were not spared from the global economic shakeups.

Total income represented a 131 percent increase with Zimre Properties investments, maintaining a regular rental yield indexation and optimising value from rental properties.

“The local reinsurance plaza was, however, adversely affected by agriculture experience emanating from climatic change, which has been on the rise.”

Clearance experience rose to 91 percent compared to 43 percent in the same period in 2021, while that of the regional reinsurance operations increased to 36 percent compared to 19 percent in the prior year, mainly driven by floods in Malawi.

“Despite these headwinds, all the business units remained profitable,” he said.

In his outlook, he said the intervention of shared services across the entire group to achieve optimized business operations is currently underway.

“This will see a reconfigured business structure that has an efficient way forward,” he said.

The internal Re organisation enhanced competitive capital, mainly in the region, is sadly bearing traction and this would lead to strengthened regional capacity and performance, he said.

The group has major projects in the pipeline in Zimbabwe and the region, seeking to grow both the asset portfolio and underwriting capacity. The projects are on the back of the group’s focus on cash generation coupled with innovation, he added.

The AGM endorsed $15,26 million paid as directors’ fees for the past year, as well as the remuneration of $12,89 million paid to Grant Thornton (Zimbabwe) for the past audit.

They also approved a full year dividend amounting to $102 569 358.

Meanwhile, group chairman Ben Kumalo retired from the board with immediate effect and was replaced by Desmond Matete.

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