FBC Insurance reports profit despite ‘challenging year’

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FBC Insurance Company recorded an inflation adjusted profit after tax of $38 million during the year ended December 31, 2020 from a $106 million loss recorded the previous year, driven by growth in investment income.
“The impressive performance was mainly buoyed by investments income of $126 million. As inflationary pressures continued to negatively affect premium revenues, attention shifted to hedging via a robust investment strategy, which yielded positive results,” FBC chairperson, Chipo Mtasa, said in a statement accompanying financial results.

She said the operating environment had changed significantly following the outbreak of the Covid-19 pandemic.
“National lockdowns greatly affected productivity and capacity utilisation in many sectors of the economy, dampening economic activity.
“Furthermore, the hyperinflationary environment, foreign currency shortages and other challenges being faced in the economy continued to negatively affect disposable incomes, making it increasingly difficult for insurance companies to do business,” Mtasa said.