The only private listed insurance company on the Lusaka Securities and Exchange has informed shareholders that it expects a 25% improvement in earnings when it reports its financial year end results, according to a statement from Zambia Reinsurance PLC.
“In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Zambia Reinsurance PLC (the “Company”) hereby advises the Shareholders of the Company that the Earnings per Share (EPS) for the financial year ended 31stDecember 2020 is expected to exceed that of the financial year ended 31st December 2019 by 25%” , read a statement issued by Choice Corporate Services, the company that offers the insurance firm company secretary services on 8th April 2021 in Lusaka.
The company was a beneficiary of exchange gains during a year that saw the Kwacha devalue by over 20% against the US Dollar. “The performance for the financial year ended 31st December 2020 has been driven mainly by the exchange gains arising from the currency devaluation of the Kwacha against US dollar owing to some of the reinsurance risk denominated in US dollars”.
However, although the company was reporting the developments, it also advised shareholders to be cautious with the information. “Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors of the Company”.
“The Company expects its results for the financial year ended 31st December 2020 to be released on SENS and published in the local press on or about Friday 9th April 2021. Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s Securities until publication of the results”.