First Mutual Life (FML) reported a 63 percent increase in after tax profit in the six months to June from $2.6 million last year to $4.3 million driven by high returns from investment securities.
FML chief executive, Douglas Hoto told analysts that the stock market rally had significantly contributed to the group’s bottom line.
Profit on investments increased to $13 million compared to $500 000 in the same period last year.
Gross premium written (GPW) increased marginally from $60.6 million in the same period last year to $61.5 million.
Life assurance registered a 7 percent increase in GPW to $7.3 million while Health insurance GPW stood at $28.1 million compared to $26 million in the same period last year.
“Operating profit went down 61 percent to $1.6 million due to high agribusiness claims under property and casualty reinsurance business and a higher claims ratio in health insurance business,” Hoto said.
Total expenses increased to $68.3 million from $53.9 million in the same period last year.
The group’s assets grew to $247.6 million from $229.7 million previously.
The group’s subsidiary First Mutual Properties, formerly Pearl Properties, posted an after tax profit of $808 000 in the half year from a loss of $1.19 million in the same period last year following a marked improvement in fair value adjustments.
Rental income decreased by 8 percent to $3.7 million from $4 million.
Occupancy levels improved from 71 percent to 74 percent as at December 31.
Both the companies did not declare dividend.- The Source