First Mutual Holdings Limited (FMHL.zw) Q32021 Interim Report

FINANCIAL COMMENTARY

Inflation adjusted performance analysis

Net premium earned, (NPE) at $6.5 billion, was 88% above prior year in inflation adjusted terms due to organic growth and above inflation rate revisions of sums insured to align with the exchange rate, particularly for the short-term insurance policies.

Rental income grew to $365 million from $228 million due to quarterly rental reviews and improvement in the occupancy rates to 89.48% [2020: 88.22%].

Administration expenses increased by 102% partly as result of inflation and also in line with foreign exchange rate movements for foreign currency denominated expenses.

Total income was 8% higher than the prior year reflecting positive returns on listed equities and fair value gains on investment property.

Total assets grew by 21% from December 2020 driven by positive gains realised on listed equity investments, fair value gains on investment property and revaluation of foreign denominated assets.

Historical financial performance analysis

Net premium earned, at $5.7 billion, was 293% higher than prior year and average year-on-year inflation rate of 52%. The increase was primarily due to organic growth, an upward review of sums insured, as well as a weakening of the Zimbabwe dollar (ZWL) against the United States of America dollar (USD).

Rental income increased by 240% from prior year largely due to quarterly rental reviews and improvements in the occupancy rates from 88.22% in 2020 to 89.48%.

The total assets increase of 33% mainly attributable to fair value gains on investment property and listed equities.

By order of the Board

S F LORIMER
GROUP COMPANY SECRETARY