Zimre targets new investments

11

ZIMRE Holdings (Zimre) says it will be embarking on a new investment focus towards infrastructure and landmark development, with an emphasis on sustainability.
The diversified group said the activities will be undertaken through its Eagle Real Estate Investment Trust (REIT) to enable both local and international investor participation.

“Looking forward, and given its proven resilience over the years, the ZHL group is focused on growing sustainable value for its stakeholders in a turbulent global economy. The strategy is set to harness the various strengths of its new structure and strategic partnerships to drive capacitation of its regional units and to expand its footprint further into the African continent,” Zimre’s chairman, Desmond Matete, said in a statement accompanying financials.
Since 2021, Matete said Zimre has been going through a culture transformation to align the organisational purpose, strategic values and leadership behaviours.
“The renewed energy, including the various initiatives the group is embarking on, are set to bring value realisation to the shareholder and the community at large,” he said.
Zimre’s income increased nine percent to $39,5 billion during the year ended December 31, 2022, compared to $36,3 billion the prior year.
Matete said the growth was driven by overall positive investment returns, strong top-line growth in premium income, particularly in Botswana and Zambia, and growth in the life and pensions business domiciled in Zimbabwe.
The group’s investment income growth was underpinned by fair value gains on investment properties largely driven by exchange rate movements.
During the year, gross premium written (GPW) was $20,4 billion, a 13 percent increase in inflation adjusted terms.
In historical terms, GPW was $17,3 billion, a 272 percent increase from the same period prior year on the back of real business growth in the region and from domestic operations. Regional operations contributed 43 percent to GPW in 2022 compared to 41 percent in 2021 and thus, remain key strategic investments that provide diversification value to the group.
The group’s total expenses grew by 36 percent to $30,1 billion in the current year from $22,1 billion recorded in the prior year, on account of unprecedented high claims experienced in the non-life reinsurance entities as a result of climate change effects.
“Going forward, the group will be improving its underwriting practices using innovative technologies to counteract climate change effects on its key reinsurance business lines. Local non-life reinsurance operations were hit the most by high agriculture claims, resulting in a claims ratio of 71 percent,” Matete said.
Zimre’s total assets increased by 51 percent in real terms to $122,2 billion during the year from $80,7 billion recorded in the comparative year driven by investment properties and equity investments, which account for 67 percent of the group’s total assets. Zimre declared a final dividend of $13,76 cents per share.