FML Holdings Limited posted a 12% decline in after-tax profit to $979 000 for the four months to April 30 2015 attributed to negative investment returns on the stock market, the company has said.
In the same period in 2014, after-tax profit was $1107 000.
In the period under review, total income grew by 1% from $37 845 000 to $38 375 000 while total expenses declined by 1% from $37 756 000 to $37 315 000.
Claims surged by 8% from $21 014 000 to $22 690 000.
Speaking at the company’s annual general meeting in Harare on Tuesday, FML Holdings chief executive officer Douglas Hoto said gross premium written increased by 3% from $38 217 000 to $39 323 000 in 2014 mainly due to good performance of the life business and the healthy business.
Net premium written grew by 1% from $35 416 000 to $35 767 000 on the same period last year.
“We are affected significantly in that low liquidity, so that we have got a big provision for credit losses. Collecting money from our clients is becoming more and more difficult, but we are trying to mitigate by ensuring that we have payment terms that our clients can meet,” Hoto said. In the period under review, rental income declined by 5% from $2 659 000 to $2 530 000 in the same period last year.
He said the occupancy level in the central business district was around 40% and on average, the portfolio was 79,5%.
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“Going forward, the outlook looks good, especially compared to last year and we expect that while we made a loss last year, we should be making a profit this year,” Hoto said.
During the period under review, operating profit grew by 1 090% from $89 000 to $1 060 000 on the same period last year.
Finance income declined by 36% from $291 000 in 2014 to $186 000.
