Farai Mabeza, Senior Staff Writer 
ZIMRE Holdings Limited (Zimre) says it will continue to pursue its new thrust to be a financial services group with core competencies in insurance, property and wealth management despite the difficult operating environment in the country.
In a statement accompanying its financials for the year ended December 31, 2021 group chairman Ben Kumalo said the company acknowledged the difficulties obtaining in the economy but would not be deterred.
Ben Kumalo, Zimre group chairman
“The strategy will be anchored by robust investment initiatives, continued consolidation of operations to capitalise on economies of scale while eliminating duplication of costs, and exploring strategic partnerships both locally and regionally to enhance its market presence,” Kumalo said.
Zimbabwe has seen numerous economic challenges emanating from the Covid-19 pandemic and resurgent inflation.
“In its (Zimre) year of reflection, concerted effort was given to implementing appropriate responses to the pandemic. These responses included robust initiatives to investments, resulting in notable growth in investment income of 269 percent to $171,6 million,” Kumalo said.
“Also among the key responses was prudent and tough decisions on costs given both the pandemic and inflation in Zimbabwe. Total expenses were, therefore, $6,44 billion, being a 186 percent increase from prior year and the cost to income ratio dropped from 50 percent to 41 percent, a creditable performance given the circumstances”.
“The group recorded a profit of $2,8 billion (2020:$1,6 billion) despite insurance benefits and claims increasing by 107 percent and operating and administrative expenses growing by 502 percent, a demonstration of the resilience of the group’s strategy and resourcefulness of its team,” Kumalo said.
Zimre recently announced a restructuring exercise that it said was meant to strengthen its business against the macro-economic shocks prevailing both in the country and in the region. The diversified group said the process would involve the reorganisation of the regional reinsurance operations to positively impact their competitive capital.
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