Financial Gazette (Harare)
Shame Makoshori
27 September 2008
Harare — ZIMRE Holdings has said it would use its regional operations in countries such as South Africa and Malawi to achieve growth targets set out for this year.
The reinsurance giant is a diversified company with interests in short term insurance, investment banking, property and the life assurance sector with a $11,5 quintillion asset base.
Last week ZimRe said the difficult economic environment in Zimbabwe, which had necessitated a business portfolio restructuring process, had not spared it.
Companies have been complaining about the corrosive effects of the hyperinflationary environment in Zimbabwe, which has rendered planning irrelevant.
A few firms have been able to mitigate the inflationary crisis through foreign currency earnings.
Fidelity Life and NicozDi-amond, subsidiaries of Zimre, are some of the insurance companies that have established operations in neighbouring countries.
Zimre chairman Ben Khumalo said in a statement accompanying the group's half year results for the period ending June 30 that going ahead, growth would be underpinned by the regional operations.
"The group is positioned for growth in 2008 and will continue to leverage on its regional operations and human capital to create value for shareholders," Khumalo said.
"The group will continue to establish business alliances with regional partners that are expected to yield results," he added.
Gross premium written for the period under review shot up by 8,6 million percent to $78 quadrillion with profit before tax surging by 322 million percent to 8,4 quintillion, underpinned by a $7,6 quintillion profit before tax reported by the reinsurance sector.
The reinsurance sector incorporates Zimre Property Investments.
Khumalo said the general insurance sector, which incorporates NicozDiamond and Malawi registered United General Insurance Company, posted a pre- tax profit of $257 quadrillion.
On Monday, Zimre's share price on the Zimbabwe Stock exchange traded at $1 200 ahead of sector players like Zimnat, which traded at $400, Afre which traded at $1 000, Fidelity whose share price closed at $150 and NicozDiamond, which ended the day at $550, but fell far below Old Mutual whose share price closed at $130 000.
Zimre's share price had by Monday surged by 479 999 9900 percent.
Be the first to Write a Comment!
Copyright © 2008 Financial Gazette. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
