ZIMBABWE Stock Exchange-listed ZB Financial Holdings (ZBFH) is poised for a significant expansion in its insurance business as it is targeting a 10% growth surge during the current financial year.
The bank’s strategy focuses on increasing sales of insurance products to existing policyholders, capitalising on its established customer base to drive business growth and strengthen its market position.
In the financial year 2023, ZB Reinsurance posted a profit after tax of $51,09 billion up from $11,46 billion in 2022, while ZB Life Assurance posted a profit of $98,17 billion, up from a profit of $5,06 billion.
“We are looking at a growth upwards of 10% in terms of our insurance business. I think it’s achievable, and this is in real terms,” ZBFH group chief executive officer Shepherd Fungura told Standardbusiness in an interview.
“The key driver is, I think, getting more policy holders buying our products and we have been using our interaction with the bank to get more customers who are banking with us to also get insurance from us, so that we sell products as a package rather than to sell products as different businesses in the ZB stable.”
In the financial year 2023, Fungura said the banking segment contributed close to 70% of the group’s total performance, while life insurance chipped in with 5 to 6%. Reinsurance also contributed about 5% to 6%, while the balance was from property and investment vehicles it had.
The insurance industry had been battling lack of diversification with the sector leveraging on traditional products, which have been slow in terms of growth.
But Fungura said the group was working on ensuring that its insurance products retainedvalue for customers.
- Shareholders approve ZW$1.5bn dividend
- ZB offers to buy out Masholds minorities
- Good times roll for ZB’s high net worth clients
- ZB in massive shake-up
Keep Reading
“What we try to do with our products is to make sure that they keep value for our customers.
“So, what we do, for example, if one’s product is giving them no value, that benefits them, we talk to them about revaluing that product so that it can benefit them,” he said.
“An example, if it’s a funeral cover, insurance type of a business, or cover type of a product, we increase the value so that it is able to purchase coffins and do services for people when they are at a funeral and so forth.
“So, that’s what we are trying try to do. So we review our products on an ongoing basis.”
