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Zimbabwe pensions players’ Q1 income tops $5bn

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Pensions companies in Zimbabwe recorded a significant jump in income for the first quarter of 2020, to $5.79 billion from $214 million last year.

The rise could largely be attributable to adjustments in premiums due to the hyperinflationary environment.

Said the Insurance and Pensions Commission (IPEC) in a pensions sector report for the first quarter.

“The income was driven by interest from investments, which constituted
51.21 percent, and fair value gains (36.75 percent), whose combined  share amounted to $5.09 billion.”

The pensions industry’s asset base stood at $29.8 billion, up 80.33 percent at the end of December 2019.

“Investment property and equities continue to re-price faster than all  other asset classes, thus diluting exposures to these assets,” said IPEC.

“As a result, investment property and equities were valued at $24.64  billion, accounting for 82.67 percent of total industry assets.”

Latest figures also showed that the sector’s prescribed assets which stood at $2.29 billion at the end of March 2020, constituted 7.67 percent of the  sector’s asset base, far lower than the regulatory minimum of 20 percent.

The IPEC report also highlighted a increase in unclaimed benefits during the quarter under review.

“The notable increase was as a result of a number of funds which  previously omitted reporting on unclaimed benefits,” said IPEC.

According to the report, members who are yet to get their dues after retirement  more than doubled to 144 609 during the period from 57 815 at the end of 2019.

And the clothing industry accounted for 74 645 members with unclaimed  benefits.

“Given the high number of members with unclaimed benefits, pension  funds are encouraged to be proactive in empowering their members with  knowledge on how to timely file for their benefits, through  pre-retirement education and pamphlets.”

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