Financial Highlights 2009
BUSINESS PERFORMANCE
TAN-RE continued with its strong and profitable
performance during the period under review. Gross
written premium income increased by 24% to TZS
36.7 billion (2008: TZS 29.5 billion), while net retained
premium increased by 33% to TZS 29.1 billion (2008:
TZS 21.8 billion). During the year, the company
recorded a superior underwriting profit of TZS 3.6
billion (2008: TZS 3.2 billion). On the other hand profit
before tax rose to TZS 4.5 billion in 2009 (2008: TZS
4.2 billion. Ultimately the company realized a profit
after tax of TZS 3.2 billion, up from TZS 2.9 billion
in the previous year. This represents an increase of
10%.
ECONOMIC ENVIRONMENT
During the year under review, the Gross Domestic
Product (GDP) for Tanzania grew at 7.5% as
compared to 7.1% in 2007, mainly as a result of the
good performance of some economic sectors such
as construction, communication and manufacturing.
The growth in GDP was however slightly lower
than the country’s target of 7.8% due to persistent
increase in oil prices during most part of 2008 and
the anticipated slow down of the global economy.
While there was a notable growth on GDP, inflation
rose to 12.5% compared with 7.0% in 2007. During the
year, the Tanzanian shilling also suffered significant
depreciation against USD trading from TZS 1,244 in
2007 to TZS 1,290 in 2008. The depreciation of the
shilling against the USD was mainly driven by import
deficit.
FUTURE PROSPECTS
The Company’s focus in the coming year will be
to continue to prudently manage its predominant
Tanzanian book of business and at the same time
expand its African business portfolio through
the continuation of aggressive marketing.
In so doing, the Company shall maintain a
disciplined underwriting approach with a view
to consolidating profitability coupled with the
strengthening of its Balance Sheet to enable it avail
increased reinsurance capacity to its growing list
of clientele.
On behalf of the company’s Board of Directors,
I wish to extend my sincere appreciation and
gratitude to ceding companies, intermediaries,
retrocessionaires and last but certainly not least
to our shareholders for their continued valuable
support to TAN-RE.
Similarly, I wish to likewise thank the TANRE
Management and staff for their valuable
contribution in ensuring that the Company
achieves its aim of becoming a strong, professional
reinsurer of choice in Africa within the shortest
time possible.
