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FIRST Mutual Holdings Limited is this year targeting a growth rate above inflation (estimated at about 1,5 percent) and overall market growth for its businesses as it seeks to consolidate its position among top performers in the life and insurance business, a senior official said.
In an e-mailed response to our Harare Bureau’s questions concerning the group’s performance in 2013 and plans for this year, FMHL group chief executive Douglas Hoto said the group has a number of initiatives in place that are meant to improve performance this year.
“Our aim this year is to grow our business above both the inflation and overall market growth rates while every year we initiate new projects and 2014 is no exception. We will therefore invest in the initiatives that I cannot point out at the moment as the year progresses,” he said.
In November last year, First Mutual Medical Savings Fund was reported to have registered a growth rate of between two and three percent since its inception in 2009 while First Mutual Life Assurance registered a 132 percent annual growth in Net Written Premium distribution between September 2012 and September last year.
Such performance is largely attributable to improvements in policyholder confidence.
Hoto said FMHL was fully capitalised by December 2013 well ahead of the June 30, 2014 deadline prescribed by the Insurance and Pensions Commission of a minimum of US$1,5 million for Life and Funeral Assurers and Re-insurers and Short term insurers and re-assurers.
He added that this placed the group in a competent position to further their business growth this year to counter competition in the industry.
Last year (April), First Mutual Life declared a 24 percent bonus for policy holders on its guaranteed pension scheme on the backdrop of strong annual results, the third year in succession that the group had passed on such benefit to its policy holders.
The 24 percent increase on pensions that was paid out last year was also way ahead of average inflation for the year that ended December 31, 2012 which stood at 3,8 percent.
The consistent annual bonus declaration was also underpinned by solid investments in properties and selected Zimbabwe Stock Exchange shares.
Online Reporter