FBC Holdings insurance units marginally below budget in five months to May 2017
HARARE, FBC Holdings insurance subsidiaries were marginally below budget as at May 2017 although ahead of last year. The Group’s insurance units are FBC Reinsurance Limited and Eagle Insurance Company Limited.
Group chief executive officer John Mushayavanhu in a trading update for the five months to May at the company’s annual general meeting said is buoyant on recovery supported by initiatives of regulator IPEC to expand micro insurance products.
“We remain supportive to the initiatives that IPEC is currently developing to support improved governance and reporting standards in the insurance sector, and to encourage insurance companies to introduce micro insurance products,” he said.
Mushayavanhu said the Group is remaining bullish despite both banking and insurance businesses operating in extremely challenging circumstances.
For the full year 2016, net earned insurance premium declined 15% and its contribution to total net income declined to 20% from 27% in 2015 largely due to reduced revenue from insurance premiums as consumption for insurance products continued to decline.
FBC Reinsurance’s gross premium income in 2016 declined to $14.8 million from $17.8 million which was a 17% decline.
Eagle Insurance on other hand saw Gross Written Premium declined marginally by 2% to $18.6 million from $18.9 million in 2015.
Meanwhile, overall Group performance in the five months of 2017 saw profit before tax in line with both budget and the comparable year ago period.
Mushayavanhu said the Group is bullish as it enters the second half of the year and the bank will achieve better results this year.
“For the five months to May 2017, the Group’s Profit before tax was in line with last year and the budget, and barring any unforeseen disruptions, we are anticipating achieving and or exceeding last year’s comparative interim period’s performance. However, Gross Revenues are 90% of the budget although the gap is narrowing,” he said.
