First Mutual Holdings’ inflation adjusted net premium earned (NPE) for the nine months ended September 30, 2021 rose 88 percent to $6,54 billion from $3,48 billion in the comparative period last year.
The life insurer said the NPE growth was driven by organic growth and above inflation rate revisions of sums insured to align with the exchange rate, particularly for the short term insurance policies.
While the property market is a bit depressed, the company said rental income rose 60 percent to $365 million from $228 million in the same period last year.
Administration expenses doubled to $2,45 billion during the period under review.
“Administration expenses increased by 102 percent partly as a result of inflation and also in line with foreign exchange rate movements for foreign currency denominated expenses,” the company said in a statement to shareholders.
Total income was 8 percent higher than the prior year reflecting positive returns on listed equities and fair value gains on investment property.
The company’s asset base surged by 21 percent to $25,26 billion from $20,89 billion previously.
FML said this was driven by positive gains realised on listed equity investments, fair value gains on investment property and revaluation of foreign denominated assets.
After tax profit declined by 75,88 percent to $849,88 million from $3,52 billion in the comparative period. The country’s biggest bank by assets, CBZ acquired 31,22 percent stake in First Mutual Holdings from NSSA however, the agreement is subject to several conditions precedent.