First Mutual Health Review

• GPW went up by 13% to $436 million (HY2019: $386 million) driven by premium rate adjustments and and organic growth.
• The claims ratio declined by 4% on account of lockdown measures and increased emphasis on COVID-19 emergencies ahead of normal medical claims.
• Membership increased by 5% to 144,215 due to brand loyalty and consistent marketing efforts.
• The company continues to roll out the bio-metric claims processing system countrywide to improve customer convenience and enhance efficiency of claims processing and settlement.

First Mutual Life Review

• Total GPW grew by 253% to $93.6 million
• Pensions & Savings – Policyholder (PH)
  • GPW at $61.7million was 230% ahead of prior year reflecting the pass through effects of salary adjustments that drive pension contributions. However, growth was lower than inflation growth as employers preferred to increase cushioning allowances at the expense of pensionable salaries.
• Life assurance – Shareholder (SH)
  • GPW at $31.9 million was 309% above prior year due to sub-inflationary increases in Group Life Assurance and funeral assurance policy cover values

NicozDiamond Review

• GPW grew by 503% to $309.6 million due to:
  • New business
  • Organic growth
  • Revaluation of sums insured.
• The claims ratio was lower at 48% (HY2019: 51%) owing to lower activity in Q2 2020, particularly for motor class, due the COVID-19 lockdown
• The net commission ratio increased to 4% (HY 2019 – 0%) there was less inward commission on fronted USD business following the introduction of the mono-currency environment from June 2019

First Mutual Reinsurance – Zimbabwe

• GPW for the period grew by 324% to $57.9 million due revision of sums insured inline with the inflationary environment.
• Growth lower than inflation due to:
  • Higher retentions on ZWL business by direct insurers following the introduction of the mono-currency environment in June 2019
  • Limited ability by clients to match the exchange rate conversions of USD sums insured.
  • No regional business written due to concerns about payment of foreign claims from Zimbabwe
• Business continued to refer regional business and local USD business to FMRE P&C Botswana.

FMRE P&C Botswana Review

• The Botswana highlights and commentary reflected in BWP to facilitate like-for-like comparison
• GPW grew by 51% in BWP driven by:
  • Improved local treaty participation reflecting improving market profile
  • Growth of specialist lines of business under the casualty segment
  • Increased regional support from countries such as Namibia
• GPW generated from Zimbabwe was BWP21.5m (FY 2019 – BWP19.2m)
• Claims ratio grew to 40% from 29% this is in line with long term industry trends
• Historically, in ZWL, GWP grew by 1034% to $245.3m with corresponding growth in operating profit of 2232% to $35.7m

First Mutual Properties Commentary

• Revenue for the year increased by 500% in real terms to $69 million (HY2019: $6.7 million) due to:
  • New lettings in high value space
  • Higher occupancy level
  • Rental rate reviews effected on ZWL tenant base
  • USD rental income converted at auction rate
• Occupancy level improved to 89% (HY2018: 76%) as the business continued to attract and retain clients due to focused refurbishments
• Independent investment property valuations as at 30 June 2020 resulted in significant increases in the portfolio value.

 

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DOWNLOAD: FMHL 2020 HY financial results presentation.pdf