First Mutual back in the black

First Mutual Life (FML) has recovered to post net profit of $9.3 million for the year to December 2016 from a loss position of $131 000 in the prior year. 

The group’s operating profit improved to $9.2 million from $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 $116 million.

The pensions business recorded a 20 percent increase in GPW to $22.5 million from $18.7 million last year which was offset by the life assurance unit which was down 5 percent to $16.2 million and the property and casualty business whose GPW fell 8 percent to $25.5 million from $27.8 million in 2015. 

Health insurance declined marginally to $52.2 million from $52.4 million in the previous year.

Tristar Insurance  registered a 20 percent decline in GPW to $3.6 million.

Total assets increased to $229.7 million from $209 million as at December 2015 as cash generated from operations increased by 46 percent to $21.2 million from $14.6 million.

FML had an investment profit of $8.8 million compared to investment losses of $4.7 million in the previous year, as the stock market rallied in the fourth quarter last year.

Basic EPS increased to 2.33 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 percent decline in revenue to $7.9 million for the same period on the back of declining rental income and occupancy levels.

Rental income declined by 7.3 percent during the year to $7.7 million with the office sector being the worst affected.

The property portfolio was valued at $137 million up from $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.- The Source

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