FINANCIAL HIGHLIGHTS
The financial highlights for the three months ended 31 March 2020 are as follows:
Comprehensive income highlights:
| INFLATION ADJUSTED | HISTORICAL | |||
|---|---|---|---|---|
| Unaudited 31-Mar-20 ZWL000 |
Unaudited 31-Mar-19 ZWL000 |
Unaudited 31-Mar-20 ZWL000 |
Unaudited 31-Mar-19 ZWL000 |
|
| Gross premium written (GPW) | 412,660 | 450,390 | 350,018 | 73,497 |
| Net earned premium | 301,562 | 373,645 | 263,883 | 48,779 |
| Rental income | 207,534 | 11,216 | 17,400 | 2,392 |
| Investment income | 71,266 | (29,315) | 223,608 | (8,932) |
| Total expenditure | (356,271) | (313,274) | (631,320) | (40,342) |
| Profit before income tax | 201,109 | 47,744 | 509,973 | 5,144 |
| Profit for the period | 71,070 | 31,308 | 383,522 | 3,379 |
Financial position highlights
| INFLATION ADJUSTED | HISTORICAL | |||
|---|---|---|---|---|
| Unaudited 31-Mar-20 ZWL000 |
Unaudited 31-Mar-19 ZWL000 |
Unaudited 31-Mar-20 ZWL000 |
Unaudited 31-Mar-19 ZWL000 |
|
| Total assets | 3,455,053 | 3,485,237 | 3,380,455 | 73,497 |
Historical financial performance analysis
Gross Premium Written (GPW) at $350.1 million was 376% higher than prior year. The growth was mainly due to organic growth, revision of sums insured in line with inflation and the weakening of the USD:ZWL rate as well as an increased contribution from the Botswana based reinsurance subsidiary.
Rental income increased by 627% from prior year largely due to quarterly rental reviews during 2019 and at the beginning of 2020 coupled by increase in occupancy rates. Occupancy rates improved from 75.36% in 2019 to 86.85%.
Administration expenses increases by 460% in line with the prevailing inflationary environment, however, the growth rate was lower that the average year on year reported inflation for the quarter of 563.3%.
Total assets increased by 46% due to revaluation of investment property, fair value gains on equity investments, revaluation of USD denominated assets and the profit the period.
Impact of Coronavirus pandemic
The Coronavirus pandemic has diminished the short-term growth prospects of the economy as well as the Group. The full impact of the pandemic on the Group is yet to be realised as the situation continues to evolve. Group revenues for the month of April 2020 were in line with plan The Group has implemented strategies to minimise impact of the pandemic and has sufficient reason to remain confident in overcoming the repercussions of the Coronavirus pandemic.
