AFRICA First ReNaissance Corporation (Afre) shareholders yesterday approved the name change of the company to First Mutual Holdings Limited, as the company posted $4 million after tax profit in the four months ending April 2013. Report by Victoria Mutomba
Speaking at the annual general meeting, Afre chief executive officer Douglas Hoto said gross premium went up by 14% to $33,5 million from $29,4 million due growth in business written.
Net premium written was up by 19% to $29,5million.
Hoto said the claims have gone up by 44% due to health claims. Total claims were at $14,7 million in the period under review from $10 million last year due to an increase in health insurance claims which were up $1,5 million.
Hoto, however, said the claims would be stabilised this year as company adopts a conservative approach.
The financial services and insurance group, formerly known as First Mutual Limited, changed its name to Afre in 2008 under the leadership of Patterson Timba. The company faced challenges which stemmed from shareholder delinquency issues.
Shareholders also approved the establishment of a share option scheme for the benefit of eligible employees, agents and directors. The scheme would be equivalent of 5%, the company’s issued share capital subject to the Zimbabwe Stock Exchange.
The company also received authority to buy back some of its shares, a move that will help the company raise working capital and pay some of its debts in 12 months. The group posted a profit after tax of $13,4 million for the year ending December 31, 2012 from $1 million during the same period last year. Total revenue during the 12-month period was $95,8 million.
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Gross premium written stood at $88,5 million due to improved performance of the health insurance business and short term businesses. Rental income was up by 9,1% to $7,3 million from $6,7 million.
Afre subsidiaries include Pearl Properties, First Mutual Life Assurance Company, FMRE Life & Health and FMRE Property Casualty Zimbabwe and Botswana.
