ZimRe Holdings Limited anticipates 3.9% GDP growth in the next year, implementing strategies to handle the volatile economy

Published On: November 27, 2023Company: ZimRe Holdings Limited (ZIMR.zw)
What strategies did ZHL deploy to handle the volatile economy for the next calendar year?
ZHL implemented several strategies to manage the challenging economy, which include the transition to a hybrid business model, focusing on the property market because of its value preservation qualities, diversifying operations in the Wealth Management sector, and planning for solid regional investments and the enhancement of underwriting capacity.

Summary:

  • The adjustment to the post-COVID economic climate has brought about various impacts, including the energy crisis and geopolitical tensions between Russia and Ukraine.
  • Inflation has been tentatively stable, spiking mid-year but since controlled through monetary and fiscal policy.
  • ZHL has experienced significant growth in specific areas, such as insurance contract revenue and historical cost terms due to new business acquisitions and developmental projects.
  • The shift towards a hybrid business model has seen an increase in direct business composition, resulting in an elevation of underwriting capacity and expedited insurance contract revenue growth.
  • Despite a difficult operating environment, the property market remains a popular investment option, offering value preservation against inflation.
  • The Insurance Broking sector has noted impressive growth in brokerage income, driven by an increased business renewal rate.
  • Life and Pensions insurance contract revenue grew significantly, mainly driven by the increased uptake of company’s insurance products and through a product called Vaka Yako.
  • Amidst a turbulent operating environment, the Wealth Management cluster resiliently diversified its operations and increased funds under management.
  • The outlook for business growth anticipates a 3.9% GDP increase for ZHL next year as projected by the World Bank, with plans for solidifying its regional investments and improve underwriting capacity.

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About ZimRe Holdings Limited (ZIMR.zw)

ZimRe Holdings Limited operates through subsidiaries to provide solutions for general insurance, health cover, reinsurance, life reassurance, reinsurance brokering and property services for private, commercial and corporate clients in Zimbabwe and overseas. Its insurance products range from short-term and whole-life insurance to endowment pensions, medical aid societies and motor, household and commercial insurance solutions. The company also has interests in producing a range of animal-drawn implements and in property management; maintaining, developing and leasing properties in the residential and commercial property market in Zimbabwe. ZimRe Holdings Limited was founded in 1983 and is based in Harare, Zimbabwe. ZimRe Holdings Limited is listed on the Zimbabwe Stock Exchange

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