Investment income lifts First Mutual Holdings in five months to May 2017
HARARE, Total Investment Income lifted First Mutual Holdings profitability in the five months to May 2017. After tax profit for the period increased to 44% to $4.35 million compared to $3.02 million in prior year same period.
In a trading update at the Group’s annual general meeting chief executive officer Doug Hoto said the current run on the Zimbabwe Stock Exchange (ZSE) resulted in total investment income surging 1050% to $5.51 million compared to $581k in 2016 same period comparable.
Investment income attributable to policyholders however declined 438% to $3.36 million compared to $996k in 2016.
Gross Premium Written during the five month period is 2% below last year at $47.99 million compared to $47.08 million same period last year comparable.
Hoto said trading during the period was constrained by the difficult environment which resulted in notable decline in short term insurance premium.
Rental income declined 5% to $2.85 million compared to $2.80 million in 2016 due to the depressed property market which is currently characterised by declining rentals and increased voids.
Hoto also told journalists after the AGM that the group has put on hold the searching of a technical partner due to withdrawal of potential investors who cited the country’s risk profile.
Meanwhile, all the resolutions of the meeting were approved.
