Zimre’s agriculture, cyclone claims surge

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ZIMRE Holdings Limited (Zimre) says claims and expenses increased by 56 percent during the nine months ended September 30, 2022, due to higher claims experienced from agriculture and cyclone-related claims and high operating costs recorded by local entities due to inflationary pressures.
The quarter under review was characterised by currency stability and saw the easing of inflationary pressures as a result of heightened monetary policies.
The diversified group said while drought and fiscal indiscipline remain the main threats to local inflation, global instability has seen energy and basic commodity prices soaring close to all time highs and driving some global economies into recession.
The group noted that although 2022 has been a challenging year, the Zimre ecosystem has proved to be adaptive and responsive to the tense macro-economic environments across all jurisdictions.

“As the group continues to pursue its business growth triangle with more focus placed on strong cash generation, the group intends to meet customer needs and provide sustainable shareholder value,” Zimre said in a trading update.
“Culture change has been initiated through the adoption of the eagle mentality which, notwithstanding the downgrading of global growth projections both by the World Bank and the Ministry of Finance and Economic Development, from 4,1 percent to 2,9 percent and 5,5 percent to 4,6 percent respectively, will propel the ZHL group to actively seek local and regional opportunities that create security, growth and profitability as the group repositions itself as an international player.”
Meanwhile, Zimre’s inflation adjusted total income for the period under review surged by 193 percent driven by reinsurance and life and pensions business operations, contributing 53 percent and 35 percent, respectively.
The group highlighted that the positive income growth resulted from real business growth emanating from organic growth, new business acquisition and positive investment property and equities.
The reinsurance business segment’s performance improved by 43 percent buoyed by new business acquisitions and high renewal rates, with the regional reinsurance subsidiaries contributing 49 percent of the income.
The life and pensions business segment grew by 100 percent underpinned by growth in the life assurance business.