INTRODUCTION

This report provides key highlights on the performance of 9 short-term non-life

reinsurance companies namely

 Emeritus - 200
 FBC - 201
 First Mutual (FMRE) - 202
 Grand - 203
 New - 204
 Tropical - 205
 WAICA - 206
 ZB - 207
 Zep -208

This report of reinsurance industry was more concerned about the period from 2010 to
2020. The analysis relates to the fourth quarter which starts on 01 October to 31
December every year.
The industry had 8 firms in 2010 until 2012 when Zep started to write premiums. In 2015
New Reinsurance seized its operations and we remained with 8 firms up to 2020. In
2018 Baobab changed to Emeritus and Colonade changed to WAICA.

Due to inflation, financial statements starting 2018 were adjusted for inflation from ZW
dollar to US dollar. The following rates were used
 Dec 2018- 1.5ZWD=1USD
 Dec 2019- 15 ZWD=1USD
 Dec 2020- 80ZWD=1USD

GROSS PREMIUM WRITTEN

On the fourth quarter of year 2010 Gross Premium Written was totaled $50 094 000 and
by the end of 2011 fourth quarter there was an increase of 35.51%. There was a sharp
increase from 2011 to the fourth quarter of 2012 which had the GPW of $91 681 000.
From the end of 2012 the graph increased slightly up to 2013 which had GPW of $99
521 00 and started to flatten up to the fourth quarter of 2016 which had GPW of $99 929
000. In 2017 GPW had slight increase of 7.93% to reach the amount of $107 857 000.
From this period there was a 2 year sharp decrease up to fourth quarter of 2019 with
GPW of $44 327 000. Finally, there was a recovery on the fourth quarter of 2020
amounted to $66 241 000.
EXPENSES

Reinsurers expenses amount between 2010 and 2012 were increasing from $14 069
000 to $ 19 897 000 and they had insignificant changes from 2012 to 2015 amounted
$20 530 000. Then the expenses amount dropped from 2015 to 2019 which had $6 396
000 and increased slightly in 2020 to $7 807 000.

UNDERWRITING RESULT

The total of underwriting result had been a loss of $3 706 000 in 2010 and had reached
its maximum in 2011 with a profit of $5 900 000. The underwriting result then fall to a
loss in 2012 and then improve to positive from 2013 to 2018 with peak in 2016 of $5
061 000 during that period. It then dropped to negative in 2019 and 2020.

CAPITAL

Total capital was $52 023 000 in 2010, then there was an increase in capital up to 2017
amounted $89 703 000. Thereafter, there was a sharp decrease till 2020 which had a
total capital of $35 415 000.

ACQUISTION COST RATIO

The acquisition cost ratio in 2010 was at 5.82% which dropped slightly in 2011 to
5.54%. In 2012 there was also a sharp decrease to 5.02% which was then stopped by
an increase in 2013 to 5.73%. In 2014 and 2015 the graph of acquisition cost almost
flattened as 2014 had 5.65% and 2015 had 5.72%. It then decreased in 2016 to 5.42%
and then increased slightly in 2017 to 5.57%. There was a sharp increase in 2018 which
had 6.78% and 2019 which had 7.19. Finally, it dropped slightly in 2020 to 7.10%.
PRESCRIBED ASSETS

In 2014 the IPEC introduced Prescribed assets where by each firm has to comply with
the minimum requirement which is currently at 5% for all reinsurers. It only took one
year for the whole industry on average to comply with the requirement. There has been
an increase since 2014 although the percentage of increase was inconsistent. A major
increase occurred in 2019 when it incremented to 18.39% from 12.02%. It decreased to
16.80% in 2020. Although the above stats relate to the whole industry on average,
some of the reinsurers never comply with the minimum percentage required by IPEC.

ASSETS

Total assets rose from $79 805 000 in 2010 to $122 948 000 in 2013 and then
decreased and increased slightly in from 2013 to 2017. The total assets then fall from
$140 822 000 in 2017 to $75 644 000 in 2019 and then improved in 2020 to $80 041
000.