We have extracted the Board’s Statement from the 2019 half year report for Prima Reinsurance (PRIMA.zm), listed on the Lusaka Securities Exchange:
The company recorded growth of 36% in Gross Written Premium (GWP) from ZMW18.4 million for the half year in 2018 to ZMW25.35 million for the same period in 2019. This increase can partly be alluded to an increase in geographical spread for business underwritten within the African continent. This increase in GWP resulted in an Unearned Premium Reserve (UPR) charge of ZMW8.06 million in 2019 compared to ZMW4.25 million in 2018. The reserve shall be releasing as we approach the year end.
The Company recorded a loss after tax of ZMW5.45 million for the first half of 2019 compared to a loss of ZMW3.620 million in the first half of 2018. The increase in the loss is mainly due to the increased UPR charge in the first half of 2019. The Company’s financial position remains robust with total assets increasing from K 61.97 million to K 65.25 million. The net current assets position for the half year ended 30 June 2019 was ZMW26.320 million
The Board of Directors resolved not to recommend a dividend for the half-year ended 30 June 2019.
The Company continues with its strategy of expanding the catchment area within Africa as it pursues promising prospects of new business to expand growth. The existing problem of debtors in the domestic market remains a major concern. However, the Company is confident that it will continue to remain a key player in the industry and expects a positive result in the second half of the year.
By order of the Board
Choice Corporate Services Ltd – Company Secretaries