Consolidated Annual Report – December 2020

In 2020, the group reported strong premium performance on an inflation-adjusted basis, with gross written premiums reaching ZWL$1.82 billion, up from ZWL$1.80 billion in 2019. The Group achieved a net profit of ZWL$78.1 million (inflation-adjusted), supported by disciplined expense control and growth in certain insurance products. However, the Group recognized a significant net monetary loss of ZWL$253.3 million due to hyperinflationary effects under IAS 29. Despite this, the Group maintained a robust solvency margin of 188% (inflation-adjusted), well above the regulatory minimum of 25%, reflecting a strong capital base.

Notably, the auditor issued an adverse opinion due to material non-compliance with IAS 8 and IAS 21, stemming from incorrect functional currency change dating and prior-year errors that were not corrected. Additionally, the application of IAS 29 (hyperinflation accounting) was based on misstated prior-period figures, further affecting the fairness of presentation under IFRS.