Prima Reinsurance Plc (PRIMA.zm) 2018 Annual Report

We have extracted below the Chairman’s Statement from the 2018 annual report of Prima Reinsurance Plc (PRIMA.zm), listed on the Lusaka Securities Exchange:

On behalf of the Board of Directors, I am pleased to present the 2018 results of Prima Reinsurance Plc.

ECONOMIC OVERVIEW

The country’s economic performance in 2018 remained generally resilient in the face of global economic challenges as well as domestic fiscal challenges. The depreciation of the Kwacha in the second half of the year triggered inflationary pressures which impacted on the overall performance of the economy.

The central bank reduced the monetary policy rate early in the year, which saw some slight improvement in liquidity in the economy, however liquidity constraints continued in the year. Agriculture output contracted in early 2018, arising from poor rainfall, although copper production continued to increase by a moderate margin. Construction also contributed to growth through public infrastructure projects and investment in commercial buildings and residential housing. The annual growth is estimated at 4.0 percent.

“I firmly believe that we have the right strategy and people in place to enable us achieve our goals and grow in the future as we have consistently done in the past.”

INDUSTRY REVIEW

2018 continued to be a challenging year in the insurance sector. The new Insurance Bill which we anticipated to be passed in 2018, was not tabled before Parliament.

This was a disappointment for the whole industry. The Bill is expected to improve an