Diversified insurance holding Group, Zimre Holdings Limited (ZHL) posted a loss before income tax in six months to june 2021 of $ 524.9 million despite recording a 102 percent growth in premiums during the period under review.
The group attributed the loss to the impact of the actuarially determined gross change in insurance and investment contract liabilities and the impact of the net loss on monetary position.
Total insurance income grew by 111 percent to $ 1.72 billion compared to the prior year period.
However, total income retreated 32 percent to $ 2.15 billion due to a 123 percent drop in fair value adjustments on investment properties.
Growth in total expenses was largely attributed to inflationary pressures on operating and administration expenses and once-off restructuring costs following the successful delisting of Zimre Property Investments (ZPI).
“Total assets decreased by 0.7 percent to $ 14.94 billion during the period under review whilst total equity decreased to $ 6.61 billion from ZWL 6.94 billion as at 31 December 2020 as a result of the loss incurred in the half year to 30 June 2021,” the Group said in its HY financial statement.
Cash and cash equivalents for the period increased by 21 percent to $ 1.73 billion in line with the group strategy to generate cash for operational use and investment.
The Group hopes its restricting exercise will strengthen it going forward especially in the wake of macro-economic headwinds in the country and the region.
“The Group is in the process of significant restructuring that includes: Integration and reorganisation of Fidelity Life Assurance to ensure that the business is focused on core business, business acquisition and innovation.
“Reorganisation of the regional reinsurance operations that will positively impact their competitive capital, Reconfiguration of business units to anchor and propel wealth management activities. This will see ZHL spearheading significant impact investments in the economy,” said the Group.
The Group did not declare interim dividend as it seeks to pursue growth strategy.