First Mutual Holdings Limited after tax profit jumps 35% to $5 mln in 5 months to May 2018

First Mutual Holdings Limited after tax profit jumps 35% to $5 mln in 5 months to May 2018

By Insurance24

HARARE, First Mutual Holdings (FMHL) after tax profit for the 5 months to May 2018 grew 35% to $5 mln compared to $3.7 mln same period last year largely as a result of increased revenues and a low growth rate of expenses.

Chief executive officer Doug Hoto in a brief update at the company’s annual general meeting told shareholders that gross premium written went up 12 percent to $70.5 mln compared to $63 mln last year same period despite a difficult operating environment.

“While the environment remains challenging, there is a glimmer of hope and the business clientele remain strong,” he said.

Group net premium earned for the period under review also went up 12 percent to $58.7 mln compared to $52.2 mln during prior year. Total direct expenses which include claims and commissions increased 9 percent to $44 mln compared to $40 mln last year.

Rental income went up 7 percent to $3.1 mln from $2.89 mln in 2017. As a result, group operating profit for the 5 months went up 66 percent to $3.5 mln compared to $2.1 mln in 2017.

Investments income was flat at $5.5 mln while investments attributable to policyholders grew 25 percent to $3.42 mln opposed to $3.37 mln same period last year.