ZIC Insurance profits surge threefold in 2023

ZANZIBAR: ZANZIBAR Insurance Corporation (ZIC Insurance) has seen its net profit increase more than threefold, thanks to reinsurance contract assets.

The state-owned, islandbased insurance firm announced its stellar performance last week, revealing that net profit surged from 620.5m/- in 2022 to 2.12 bn/- in 2023.

This exceptional growth, primarily driven by an increase in reinsurance contract assets, underscores the insurer’s strategic risk management and financial resilience in a challenging economic environment.

This profitability boost came despite a slowdown in revenue, which dropped from 38.32bn/- to 27.93bn/-.

However, insurance service expenses decreased to 9.1bn/-, compared to 52.29bn/-, which helped drive the profit trend upward. Additionally, net investment income more than doubled, rising to 2.65bn/- from 1.05bn/- in 2022.

Other operating expenses slightly increased to 8.73bn/- from 7.05bn/-, but were offset by net insurance and investment results of 11.87bn/-, contributing to the stellar performance in 2023.

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The company’s total assets grew to 59.28bn/- in 2023, up from 51.51bn/- in 2022.

According to the statement, a substantial portion of these assets came from reinsurance contract assets, which were valued at 20.2bn/- at the end of 2023, up from 16.73bn/-.

The firm’s reinsurance contracts, in particular, have played a pivotal role in mitigating risks and ensuring financial security, allowing it to maintain profitability even in challenging economic conditions.