Consolidated Annual Report – December 2023

The group reported a return to profitability on an inflation-adjusted basis, with a profit before tax of ZWL$5.58 billion, a significant recovery from a loss of ZWL$2.17 billion in 2022. This performance was driven by strong growth in insurance revenue, which reached ZWL$154.3 billion, nearly doubling from the previous year’s ZWL$82.0 billion. Investment income and other operating income also contributed positively to the turnaround.

However, the auditor issued a qualified opinion due to two material non-compliances with IFRS. First, the valuation of property and equipment did not comply with IFRS 13 (Fair Value Measurement) as the USD-to-ZWL conversion for valuations may not reflect market participant assumptions. Second, the inventory valuation at subsidiary Nectacare (Pvt) Ltd departed from IAS 21 (Effects of Changes in Foreign Exchange Rates), as inventory was translated using historical rather than spot exchange rates, preventing verification of inventory and cost of sales accuracy.

Despite the audit qualifications, the Group maintained a strong solvency margin of 81% (inflation-adjusted), well above the regulatory minimum of 25%, reflecting a resilient capital position. The Group also generated robust operating cash flows of ZWL$20.78 billion and continued to operate as a going concern, with regulatory capital exceeding minimum requirements.