First Mutual back in the black, reports $9,3mln FY profit

First Mutual back in the black, reports $9,3mln FY profit

HARARE, March 23 (The Source) –  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.