First Mutual GPW edges up to $60mln in H1, recovers from loss position

First Mutual GPW edges up to $60mln in H1, recovers from loss position

HARARE, September 17 (The Source) – Insurance group First Mutual Holdings Gross Premium Written (GPW) grew by a marginal two percent to $60,2 million for the six months to June  2015 on the back of improved performance from its health insurance unit, the company said on Thursday.

In the prior year, the group achieved GPW of $59.2 million.

The group achieved a profit after tax of $400,000 from a loss of $4,1 million in the previous year. It narrowed its operating loss to $68,000 from $4,4 million last year.

It suffered investment losses of $2,1 million in the first half compared to losses of $1,7 million last year as the stock market performed poorly.

Rental income fell two percent to $3,7 million as the group lowered charges to retain clients.

“The average rental per square metre decreased from $7.86 in 2014 to $7.58 in 2015. The occupancy rate for the period was lower than the comparative prior period,” the company said in a statement.

Total expenses declined to $57 million from $60,3 million in the prior year mainly due to non-recurring staff rationalisation expenses incurred in 2014 and resultant savings in the current year.

The health unit saw its gross premium written grow by seven percent to $25,8 million from $24,2 million previously on the back of increased membership and higher monthly premiums.

As at June 30, the company had 114,729 subscribers compared to 111,538 members in the prior period.

Its life assurance arm’s GPW fell four percent to $15,6 million while its asset management business recorded gross income of $600,000.

Its Botswana unit saw GPW for the period at $2 million, 10 percent higher than last year due to new business acquired by the company during the period in spite of the depreciation of the Pula against the USD.

Listed subsidiary, Pearl Properties reported a four percent fall in revenue to $4,3 million as rental income declined similarly to $4,2 million.

The company did not declare a dividend.