Nyashadzashe Ndoro
Chief Reporter
Zimre Holdings Limited, a diversified financial services company listed on the Zimbabwe Stock Exchange, has reported a 56% growth in profit to US$9.8 million, driven by increased insurance contract revenue and investment income in its trading update for the third quarter ended September 30, 2024.
Insurance contract revenue grew 8% to US$43.5 million, with the reinsurance cluster contributing 71% of total revenue. The life and pensions cluster recorded a 5% increase in insurance contract revenue, while the short-term insurance cluster posted an impressive 41% growth.
Total income increased 7% to US$22.6 million, with all business units contributing positively except for insurance broking and reinsurance operations in Malawi. Total assets grew 14% to US$193.2 million, spurred by investments in properties and financial assets.
Net cash generated from operations surged 177% to US$16.3 million, reflecting the company's focus on building a strong cash wallet.
Zimre Holdings' business growth strategy focuses on diversification, particularly in regional markets. The company is poised to capitalise on demand for risk mitigation and inflation-resistant assets in sectors such as insurance, real estate, and wealth management.
Key developments include progress on flagship projects Mazowe Walk and Victoria Falls mixed-use development, commencement of Selbourne Park residential development in Bulawayo, and strategic alignment with digital transformation, regulatory adaptation, and sustainable investing.
Company Secretary Ruvimbo Chidora attributed the growth to the company's diversified business model and strategic focus on regional expansion.
"Zimre Holdings remains committed to sustaining growth through our diversification strategy, infrastructure development, and alignment with emerging trends," Chidora said.
The company's outlook remains positive, despite challenges in the Zimbabwean and Sub-Saharan African markets.
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