ZIMRE Holdings Limited Gross Premium Written (GPW) remained flat for the year ended December 2013 and profit declined to $1,7 million during the period under review. Victoria Mtomba Business Reporter
Latest trading figures released by the group indicate that its profit declined to $1,7 million in 2013 compared to $3,6 million in 2012.
The group recorded a GPW of $76,89 million during 2013 compared to GPW of $76,86 million in 2012.
GPW is the total premium written and assumed by an insurer before deductions for reinsurance and ceding commissions.
In a statement accompanying the group’s results, Zimre chairman Benjamin Kumalo said domestic operations contributed 57% of GWP compared to 53% in 2012. While Malawi, Mozambique and Zamia contributed 21%, 11% and 5% respectively to total GWP.
The reinsurance sector GPW was 10% lower at $37,4 million during the period under review compared to the same period in 2012.
Life and health reassurance GPW grew by 21% to $5,1 million in 2013 although an $1,3 million loss was recorded due to an increase in claims and an upward revision of the present value of actuarial liabilities.
General insurance posted GPW of $39,2 million which was 7% higher than 2012 while operating profit was up 100% to $2,1 million from $1 million in 2012 due to the recovery in Malawi.
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During the period under review operating profit improved to $1,6 milliaon from a loss of $2,2 million in 2012 due to favourable claims.
“Group reinsurance operations adopted a deliberate strategy of writing only collectable and profitable business in order to improve liquidity and profitability,” Kumalo said.
The economic growth target of 5% was not achieved due to a number of challenges facing the economy which among others included diminishing consumer demand, liquidity constraints, high cost of borrowing, absence of significant Foreign Direct Investment inflows and declining capacity utilisation.
According to a report by the Insurance Pension Commission life companies in 2013 wrote $262 million in gross premiums with 92% or $250 million being made up of recurring business while $22 was business streams due to employee benefits.
The employee benefits products contributed 73% of the business portfolio.
