First Mutual back in the black

Douglas-Hoto

First Mutual Ltd has recovered to post a net profit of US$9,3 million for the year to December 2016 from a loss position of US$131 000 in the prior year.

The Source.

The group’s operating profit improved to US$9,2 million from US$4,4 million in 2015 largely due to lower claims, a reduction in impairment allowances and acquisition expenses.

Gross Premiums Written (GPW) remained flat at US$116 million. The pensions business recorded a 20% increase in GPW to US$22,5 million from US$18,7 million last year which was offset by the life assurance unit. The life assurance unit was down 5% to US$16,2 million and the property and casualty business whose GPW fell 8% to US$25,5 million from US$27,8 million in 2015. Health insurance declined marginally to US$52,2 million from US$52,4 million in the previous year.

Tristar Insurance registered a 20% decline in GPW to US$3,6 million.

Total assets increased to US$229,7 million from US$209 million as at December 2015 as cash generated from operations increased by 46% to US$21,2 million from US$14,6 million.

FML had an investment profit of US$8,8 million compared to investment losses of US$4,7 million in the previous year, as the stock market rallied in the fourth quarter last year.

Basic EPS increased to 2,33US cents. The board did not declare a dividend.

The group’s property subsidiary Pearl, which is separately listed on the Zimbabwe Stock Exchange reported a 6% decline in revenue to US$7,9 million for the same period on the back of declining rental income and occupancy levels.

Rental income declined by 7,3% during the year to US$7,7 million with the office sector being the worst affected.

The property portfolio was valued at US$137 million up from US$135 million last year as a result of the reclassification of the company’s cluster house project — George Square Mews to investment property from inventory. —

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