ZIMRE Holdings Ltd has secured five-year renewable management and technical service contracts with regional insurance and asset management companies with
an option of getting equity participation.
The group’s chief executive officer, Albert Nduna, said the management contracts were part of the group’s expansion programme to ensure that its subsidiaries remain competitive locally and regionally.
“The group has secured five-year management and technical service contracts with regional and asset management companies which are renewable,” said Nduna during an analyst briefing this week.
Businessdigest understands under the management contracts short-term insurer Nicoz Diamond and life assurer Fidelity will run Zambia’s Cavmont Insurance Ltd’s short-term and life businesses.
Nduna said the group was still aggressively scouting for regional opportunities.
“We are pursuing strategic alliances and partnerships to improve competitiveness locally and regionally. If we join other companies we would move faster in terms of expansion and earnings,” Nduna said.
He said all operational subsidiaries and associate companies in the financial service sector would be capitalised during the current reporting season.
The group recorded a profit after tax of $6,862 billion during the interim period to June 30, against $275 million achieved during the same period last year. This represented a 2 393% increase.
Investments rose by 1 625% from $598 million to $10, 3 billion, while the group’s total revenue increased from $2,155 billion from $232 million realised during the comparable period last year.
Zimre said in a statement accompanying results that the operating environment for the period under review remained “extremely difficult” despite the various fiscal and monetary initiatives implemented to turn around the crisis-sapped economy.
“The environment was characterised by negative economic growth, hyperinflation, volatile and negative real interest rates, acute shortages of foreign currency, low capacity utilisation, high unemployment and perpetual erosion of disposable incomes,” said Zimre.
ZimRe is an investment and coordinative company holding a number of synergistically linked subsidiaries operating in Zimbabwe and within Africa. The core business of the group’s subsidiaries is the provision of insurance services.
The group’s balance sheet grew by 1 303% from $1,1 billion last year to $15,4 billion during the period under review. Shareholder funds, at $5,75 billion, reflect a growth of 1 433% over the same period last year.
Attributable profit at $4,50 billion increased by 2 479% when compared to $175 million achieved during the same period last year.