FMHL gross premium written up 2% to $5,9 billion in 2020
HARARE, First Mutual Holdings (FMHL) gross premium written (“GPW”) for 2020 grew two percent to $5,9 billion as a result of organic growth on the existing portfolio and the continuous revaluation of insurance policy values in line with inflation to ensure clients had adequate cover.
Rental income for the year also amounted to $257 million and was ahead of prior year by nine percent.
Doug Hoto, the group’s chief executive, said the real growth, relative to prior year, was due to quarterly rental reviews and increases in occupancy rates in retail and residential properties.
He noted that the Group achieved investment income of $346 million for the year under review compared to an investment loss of $1.8 billion in 2019 with the investment gains driven by fair value gains on listed and unlisted equities in line with the general performance of the ZSE Industrial Index.
In terms of operations review, First Mutual Life Assurance Company GPW decreased by 38 percent to $523,3 million partly due to below inflation adjustments to basic salaries that drive the Employee Benefits (pensions and group life assurance) division.
Hoto said revenue growth was also negatively affected by the slow pace in increasing life cover amounts in the individual life division.
“The company adjusted its operating structure to align to changing market preferences and continued to invest in the funeral services unit.”
First Mutual Health GPW grew by 23 percent to $2 billion mainly due to increases in ZWL member contributions as the company sought to reduce shortfalls and align tariff rates to inflation and thus reduce shortfalls.
NicozDiamond Insurance Company Limited GPW grew by three percent to $2,1 billion driven by asset revaluations to protect clients against insurance value erosion by inflation and organic growth within the existing portfolios.
Diamond Seguros migrated from an associate to a subsidiary following the completion of a recapitalisation exercise in 2020. GPW grew by 20 percent in 2020 as a result of improved broker business due to improved confidence after recapitalisation of the business.
First Mutual Reinsurance Company Zimbabwe GPW decreased by 48 percent to $365,5 million mainly due to increased retention levels by cedants following the introduction of the Zimbabwe dollar as the sole currency in June 2019.