Old Mutual Zimbabwe profit up 600 percent

Old Mutual Zimbabwe group’s after tax profit increased nearly six times to $91,8 million driven by the surge in investment income from non-banking.

Basic earnings per share improved to 26.7 cents from 3.7 cents previously on the back of an increase in net profit.

Total revenue increased by 126 percent to $460.5 million in the full year period to December 31, driven by a surge in investment income from non-banking and gross earned premiums.

Investment income from non-banking increased by 202 percent from a loss of $126.2 million in the previous year to $128.8 million, driven by unrealised gains of $101.6 million from financial assets held by the group in the period.

Basically the increase in investment income from non-banking was on the back of an increase in value of equities buoyed by the rally on the stock market following the introduction of bond notes.

Gross Premiums Written in the period were up 3 percent from $183.5 million in the previous year to $188.8 million.

Old Mutual is an integrated financial services group whose activities include life assurance, short term insurance, property investment, asset management and banking activities through its Central African Building Society (CABS).

Non-life sales were up 23 percent to $273 million while life sales declined by 26 percent to $21.1 million in the period.

Property investment dropped four percent from $408.4 million in the previous year to $392.6 million.

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