HARARE, July 2 (The Source) – Insurance group First Mutual Holdings’ operating profit for the four months to April was up by over 1,000 percent to $1 million driven by growth in gross premiums written (GPW) and cost reduction, chief executive Douglas Hoto said on Tuesday.
In a trading update after the group’s annual general meeting, Hoto said GPW had increased to$39,2 million from $37,3 million during the period under review but claims also rose to $26,6 million from $21 million.
“Early this year when we announced (financial results for 2014), we said we had taken a number of measures to reduce the expenses of management,” Hoto said.
“In the first four months of the year, we see that reduction of nearly of almost $700,000 as a result of the effect of the staff rationalisation and right-sizing that we did. So when you look at the total expenses and the total net income, we have an operating profit of just over $1 million in the first four months compared to the nearly break-even operating position (of last year.)”
Administration expenses declined to $7,7 million from $8,4 million, Hoto said.