Zimre : Q3 Trading Update

TRADING UPDATE

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

BUSINESS ENVIRONMENT

Whilst the economy connues on a recovery path following the devastang effects of the Covid 19 Pandemic, the business environment has been riddled with various challenges in 2022. The third quarter was characterized by currency stability and saw the easing of inflaonary pressures as a result of ghtened monetary policies and other complementary measures. Whilst drought and fiscal indiscipline remain the main threats to local inflaon, global instability has seen energy and basic commodity prices soaring close to all mes highs and driving some global economies into recessions.

GROUP PERFORMANCE

The ZHL Group's total income for the nine months to September 2022 grew by 193% in inflaon adjusted terms and 1044% in historical cost terms. The growth was propelled by reinsurance and life and pensions business operaons each contribu]ng 53% and 35% respec‰vely. The posive total income growth resulted from real business growth emanang from organic growth, new business acquisiµon and posive investment returns from investment property and equies.

Reinsurance business segment's posive performance of 48% in inflaon adjusted terms and 53% in historical cost terms was driven by new business acquisiµon and high renewal rates. Regional reinsurance subsidiaries operang in stable environments contributed 49% of the income. Life and pensions business segment grew by 100% in inflaon adjusted terms and 200% in historical cost terms underpinned by growth in the life assurance business. The general insurance business segment's gross premium wriŒen grew by 31% in inflaon adjusted terms and 207% in historical cost terms reflecng the growth in the credit core and bonds business. Support from strategic partnerships in terms of broker business also saw the motor book increasing significantly during the period under review.

Total claims and expenses increased by 56% in inflaon adjusted terms and 613% in historical cost terms, the increase was a result of higher claims experience from agriculture and cyclone related claims and high operang costs recorded by local enŸes due to inflaonary pressures currently obtaining in the economic environment.

The Group recorded a profit in inflaon adjusted terms from a loss posion in prior year and a 3732% growth in historical cost terms and connue generang posive cashflows in line with the Group's strategy of cash, customer and change mantra.

OUTLOOK AND BUSINESS GROWTH STRATEGY

2022 has been a challenging year, however the ZHL ecosystem has proved to be adapve and responsive to the tense macro-economic environments across all jurisdicons. As the Group connues to pursue its business growth triangle with more focus placed on strong cash generaon, the Group intends to meet customer needs and provide sustainable shareholder value. Culture change has been inivated through the adopon of the Eagle mentality which notwithstanding the downgrading of global growth projecons both by the World Bank and the Ministry of Finance and Economic Development from 4.1% to 2.9% and 5.5% to 4.6% respec‰vely, will propel the ZHL Group to acvely seek local and regional opportuniŒes that create Security, Growth and Profitability as the Group reposi}ons itself as an internaonal player.

By order of the Board

Ruvimbo Chidora

Group Legal Execuve/Company Secretary

9 November 2022

D. Matete (Chairman), M Haken, J Maguranyanga, I Mvere, HWB Rudland, C von Seidel, E Zvandasara, S Kudenga* (*Execuve)

Head Office: Block D, 2nd Floor Smatsalsa Office Park Stand Number 10667, Borrowdale Harare, Email: [e-mail], Website: www.zhl.co.zw