Zimnat Life Assurance Co. Limited

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Zimnat Life Assurance Company Limited (2021-12)
  • Zimnat Life Assurance Co. Limited
  • Year : Dec 2021
3 Tokens
USD 300.00
Summary

Earnings moderated in FY20 driven by operating expenses and claims incurred, which remained elevated due to the negative impact of the change in functional currency to the local unit. The subsequent onset of hyperinflation translated into an unfavourable claims experience, especially on newly introduced indexed products. Accordingly, the net incurred loss ratio increased sharply to 663% (FY19: 277%; FY18: 54%), while the operating expense ratio equated to 139% (FY19:84%). This was partially offset by a net monetary profit of ZWL1.2bn (FY19: ZWL786m net monetary loss), translating to an operating margin of 1%, against a negative operating margin of 31% registered in FY19. Going forward, we expect a relatively high operating expense base to be sustained and claims to continue elevated.

Additional Information

The Stable Outlook captures the expectation that earnings will be sustained within a positive range and support solvency levels. Furthermore, we believe liquidity will be maintained at an intermediate level. The business profile is expected to remain limited over the outlook horizon. Upward rating movement may follow an improvement in the business profile, while liquidity and risk adjusted capitalisation remain within the current range.

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