eBusiness Weekly
Tawanda Musarurwa
Insurance group First Mutual Holdings’ Gross Premium Written (GPW) grew by a significant 38 percent to $84,7 million for the six months to June 30, 2018 on the back of improved performance from its health insurance unit, pensions and life assurance units.
The jump in total GPW also reflected the acquisition of NicozDiamond Insurance Company Limited (NDIL). During the period under review, FMH acquired NDIL and the company was consolidated from December 1, 2017.
In the prior comparable period, the group achieved GPW of $61,4 million (excluding NDIL).
The group achieved a profit for the period of $8,7 million, which was up 102 percent compared to the same period last year.
Consolidated rental income stood at $3,8 million, a gain of 40,6 million from last year.
“The positive movement is attributed to improved weighted average occupancy and the increase in the average rental per square metre,” said chairman Oliver Mtasa in a statement accompanying the results.
“In 2017, management embarked on an exercise to improve the ambience of the property portfolio, which helped in attracting new tenants and retention of existing ones.”
Group operating profit jumped 227 percent to $5,4 million from last year (the new acquisition contributed 41 million to the increase in operating profit).
During the period under review, FMH attained an investment portfolio of $1,8 million, significantly down from $13 million previously.
Management attributed the decline to a “sluggish performance in share prices” in 2018 compared to last year.
Year-to-date, the Zimbabwe Stock Exchange’s Industrial Index experienced a positive growth of 2,93 percent in the first six months of the year, compared to a positive growth of 35,59 percent during the first six months of last year.
Total assets rose 4 percent to $344,2 million.
“The growth was due to increases in investment property by $8 million and listed equity values by $11,1 million. Debt securities at amortised cost declined by $8,3 million.
“Cash and balances with banks increased by $3,1 million due to a combination of cash generated from operations and the restructuring of some of the debt securities at amortised cost,” said the chairman.
In terms of FMH’s operations, the health insurance unit’s GPW grew 6 percent to $29,8 million on the back of “organic growth on corporate clients and acquisition of new business.”
GPW for both the group’s life assurance and pensions, and savings businesses increased by 20 percent compared to the same period last year.
First Mutual Reinsurance Company’s GPW for the period declined 27 percent during the six months period under review, while FMRE Property and Casualty Ltd (Bostwana)’s GPW was 56 percent ahead of prior year.
New acquisition, NDIL’s GPW was up by 4 percent to $19,3 million, while that of TristarInsurance Company rose by 33 percent to $3,4 million.
Revenue for First Mutual Property was up 4 percent to $4 million for the period, attributable to new lettings in high value space.
First Mutual Wealth Management (Pvt) Ltd posted lower operating profit of $0,02 million, down from $0,1 million last year.
The board did not declare a dividend for the period.
