FIRST Mutual Holdings Limited (FML) has recorded a 1% increase in gross premium written to $116,1 million for the year-ended December 31, 2015 due to improved performance from the health insurance business.
BY TARISAI MANDIZHA
In the period under review, gross premium written in the health insurance grew by 5% to $52,5 million from $50,2 million in 2014. Gross premium written for other units declined.
Speaking at the group’s analysts briefing in Harare yesterday, FML chief executive officer Douglas Hoto said during the year under review the group achieved improved financial performance, moving from a loss position of $5,1 million to a profit for the year of $0,1 million.
This was attributed to increased revenue mainly in the health and reinsurance business, efficiency claims management and cost containment strategies including the staff rationalisation exercise carried out in 2014.
“While operating environment is expected to remain challenging, the board is confident that the business process efficiencies being implemented coupled with prudent cost containment measures will position the group to deliver value to its stakeholders,” he said.
Hoto said the gross premium written for the health insurance business grew on the back of increased contribution rates per member due to the new clients joining higher plans and the increase in membership rates for direct paying members of 30% effected in June 2015.
He said valid membership at December 31 2015 was 112 122 compared to 113 969 members in the prior year.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Hoto said the insurance sector was “expected to deliver modest growth driven by sustained demand for retail products while the employee benefits segment is likely to shrink further due to limited growth in the formal employment sector”.
He said investment returns were projected to improve driven by the positive performance in fixed income securities and the resilient of the property sector while bearish conditions on the Zimbabwe Stock Exchange would continue to dampen the performance of equities.
