FINANCIAL COMMENTARY
Inflation adjusted performance analysis
Net premium earned
The net premium earned (“NPE”) for the period grew by 58% compared to prior year to a total of ZWL 39.3 billion. The growth relative to prior year was driven by acquisition of new business and an increased revenue contribution in USD, including good performance by foreign subsidiaries. Foreign currency premiums were translated to ZWL at the official exchange rate which depreciated faster than inflation. Another factor was the revision of ZWL insurance covers in an effort to ensure adequate protection for our clients across the product porttolio.
Total income
Total income for the period ending 30 September 2022 amounted to ZWL 58.2 billion, 39% higher than the prior year figure of ZWL 42 billion. Major contributing factors to this growth were higher net premium earned, fair value gains on investment property and foreign currency exchange gains.
Profit after tax
The profit for the period grew by 236% to ZWL10.8 billion owing to increased revenue and net fair value gains on the investment portfolio.
Total assets
The total assets for the period grew by 20% from ZWL 115 billion at 31 December 2021 to ZWL 137.8 billion by 30 September 2022. This increase in assets was attributable to the increases in the fair values of investment properties and the revaluation of foreign currency denominated assets, predominantly cash and cash equivalents and premium receivables.
Liabilities
Included in total liabilities are life insurance and investment contract liabilities that grew by 3% to ZWL 41.8 billion. The increase in this liability was constrained by the negative outturn on the listed equity portfolio during the period in line with ZSE trends.
Historical financial performance analysis
Net premium earned
For the period ending 30 September 2022, the Group’s NPE was ZWL 22.6 billion, 296% higher than prior year. The real growth is mainly due to higher USD business levels as well as an upward review of ZWL sums insured in order to maintain product relevance.
Total Income
The total income for the period amounted to ZWL 104.3 billion, 621% higher than the prior year of ZWL 14.5 billion. The overall growth demonstrates the increase in premium income and investment income across all segments of the investment portfolio.
Profit after tax
The profit for the period grew by 1157% to ZWL 39.5 billion. The increase was driven by the growth in the insurance and rental income as well as the growth in investment income.
Total assets
The total assets for the period grew by 284% from ZWL 35.2 billion at 31 December 2021 to ZWL 135.2 billion by the end of the review period. This was mainly attributable to the increases in the fair values of investment properties held by the property company, the cumulative gains arising from the ZSE listed entities as well as a revaluation of foreign currency denominated assets.
S F LORIMER
GROUP COMPANY SECRETARY
Trading Update Q3 2022 for the period ended 30 September 2022
