adminimpact of the firm’s new markets, products and distribution channels started to bear fruit.
Chairman Mr Tawanda Nyambirai said the group was now able to cope with a tough environment, as after-tax profit was 165 percent up compared to the same period last year when the group posted a US$7,2 million loss.
This was achieved on the back of 62 percent growth in gross premium written to US$42,9 million although total revenue totalled US$42 million whereas expenditure jumped 42 percent to US$37 million in the same period.
As such, profits attributable to policyholders recovered from a loss position of US$7,5 million in the six months to June to a profit of US$6,3 million in the half year to June 30 2011, showing strong positive growth.
“Going forward the group remains confident of a continued recovery, despite the challenges faced in the first half of the year,” said Mr Nyambirai.
Afre is working on a US$15 million rights issue and the capital raising initiative, to capitalise subsidiaries to create capacity for them to underwrite more business in line with strategic plans of the group.
The insurance entity said First Mutual Life, which posted US$12,1 million profit and contributed 65 percent to gross premium written, witnessed significant growth in business volumes in the first half of the year.
The firm contends the individual life business has more scope for growth from renewals of existing policies and an increase in business from the mobile-based life assurance service offered in partnership with Econet. Ecolife volumes are expected to grow once the legal wrangle wit Namibian partners Trustco Mobile is finalised.
Short-term insurer Tristar Insurance achieved gross premium income of US$9,7 million after 31 percent increase on prior year and that enabled the Afre unit to record a US$1,8 million profit for the period under review. Afre said FMRE Property managed gross premium of US$646 000 as Botswana operations start to gain momentum and looks to do well judging by a number of positives in its market.
The unit posted a US$59,734 loss.
FMRE Life and Health recorded 31 percent increase in gross premium written while profit stood at US$42 000 while Pearl Property saw revenue rising from US$2,8 million in the half year to June 2010 to US$3,1 million in June this year.
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