Zambia Reinsurance has posted an 83% surge in net profit to ZMW28.5m ($1.05m) in the financial year ended 31 December 2024, compared to 2023, according to the company's financial statements lodged with the Lusaka bourse. The increase was achieved on the back of strong revenue growth, investment income and exchange gains.
Reinsurance revenue increased by 56% year-on-year to ZMW140.3m, driven mainly by new business across multiple classes of reinsurance.
Total assets increased to ZMW209.80m as of 31 December 2024 from ZMW151.65m as of the end of 2023.
Operating environment
The overall economic outlook for Zambia is encouraging, although the drought in the 2023/2024 rainy season had a ripple effect on key macroeconomic indicators such as the Gross Domestic Product (GDP), inflation and the exchange rate, said the reinsurer. The continued implementation of the Insurance Act, 2021, which entered into effect in December 2022, is transforming the industry through the promotion of reinsurance placement in Zambia. This development has not only created favourable conditions for revenue growth but has also contributed to an expansion in the number of industry participants.
The reinsurer achieved the strong financial results in 2024 despite the challenging economic environment marked by drought and regulatory changes. 2024 was the second year of implementing the new International Financial Reporting Standard 17.
Outlook
Zambia Re said, “The company's outlook remains positive, with projected revenue growth driven by the ongoing implementation of the Insurance Act No. 38 of 2021, coupled with a favourable macroeconomic environment.”
The company is focused on continued growth and success in 2025.
“Sustainability will take centre-stage in our strategic direction,” said Ms Joyce Muwo Mwansa, Zambia Re chairperson. It is also committed to enhancing operational efficiencies through the adoption of information technology to boost service quality and increase capacity to meet market demands.
Zambia Re was established in August 2006 and started operations in January 2007. It is the first Zambian-owned reinsurance company in the market and was listed on the Lusaka Stock Exchange in September 2013.