Insurance sales boost Old Mutual H1 revenue 11pct to $139,7mln

Insurance sales boost Old Mutual H1 revenue 11pct to $139,7mln

HARARE, August 12 (The Source) – Old Mutual Zimbabwe registered an 11 percent jump in total revenue to $139,7 million in the six months to June 30, driven by a 60 percent surge in non-life sales.

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).

Gross Premiums Written for the General Insurance unit were up 7 percent to $21 million, while profit before tax at $3, 2 million was up 11 percent.

Non-life sales were up 60 percent from $92, 9 million to $148,7 million.

Operating profit was flat $33,1 million while profit after tax declined 4 percent to $12,5 million.

The Investment services unit registered a 17 percent decline in profit before tax to $2, 1 million weighed down by a decline in property values and equity investments. Investment property value fell to $397, 8 million from $408 million.
Funds under management are down from $1, 6 billion to $1,5 billion.

Old Mutual Zimbabwe is a 75 percent owned subsidiary of London-listed Old Mutual Plc.

Loans and advances at $532, 9 million are up 8 percent while deposits are also up by 7 percent to $768 million.

The banking unit’s ratio of bad loans rose from 6 percent last year to 10 percent in the half year under review.
Basic earnings per share dipped to 3, 5 cents from 3,8 cents previously.