FML profit up 35 percent

Enacy Mapakame
Insurance giant First Mutual Holdings Limited (FMHL) recorded a 35 percent jump in profit after tax to $5 million in the five months to May 2018, compared to $3,7 million achieved in the same period last year on the back of growth in premiums.

Group chief executive officer Douglas Hoto told shareholders at the group’s annual general meeting that gross premium written rose 12 percent to $70,5 million from $63 million.

At $58,7 million, net premium earned during the period under review was 12 percent above $52,2 million achieved during the comparable prior year period.

Total direct expenses inclusive of claims and commissions went up by 9 percent to $43,8 million.

Mr Hoto however said the operating environment remained challenging during the period under review, albeit brighter economic prospects going forward.

Rental income for the period increased by 7 percent to $3,1 million.

Of late, the property sector has bemoaned declines in rental income due to increased voids or downward reviews in rentals as companies continue to battle economic challenges.

Other income also increased by 41 percent to $0,4 million.

The group achieved an operating profit of $3,5 million, representing a 66 percent increase from $2,1 million achieved in the same period last year.

Total investment income remained flat at $5 million.

During the period under review, FMHL made an offer to buy out the remaining minority shareholders of NicozDiamond Insurance Limited following its acquisition of an 80,92 percent stake of the latter’s issued shares.

The transaction will be done by way of a scheme of arrangement in terms of the Companies Act, in a move that will see NDIL merge with FMHL’s subsidiary Tristar Insurance Company Limited before delisting from the Zimbabwe Stock Exchange (ZSE).

On a year to date basis, FMHL shares’ performance on the Zimbabwe Stock Exchange (ZSE) fell 22 percent.

The counter hit a 52 week high of 19,5 cents and plunged to a low of 14 cents. By close of trade yesterday, its shares were at 15,13 cents.