FML insurance revenue ticks up

“The year-on-year growth in the ICR was driven by the continued revaluation of insurance policy values to match inflation and exchange rate movements to ensure adequate cover for clients,  as well as improve product relevance,” FML stated in a trading update.

“Additionally, clients have continued migrating to US dollar-denominated policies for value preservation in case the insured event occurs.

“Total US dollar premiums stood at $70,2 million for the group constituting 71 percent of total insurance revenue from 62 percent in the prior year.”

The insurance service result declined by 66 percent to $13,1 billion compared to the prior year.

“The decline was due to the impact of continuous Z$ depreciation on USD business with USD premiums being translated at the beginning of the cover period and the USD claims emerging at the later stages,” read the trading update. In US dollar terms, the insurance service result was positive after rising by 24 percent to US$12,57 million from US$10,12 million in the comparative period.

Rental income was up 200 percent to $18,2 billion.

“This growth was driven by various factors including adjustments on Z$ rentals to align to the market rates and a higher proportion of US dollar-denominated leases, with US$ leases constituting 76 percent of the total rental income.

“The occupancy levels stood at 87,82 percent from 87,49 percent in prior year, whilst the average rental/square metre increased to US$4,78 from US$3,48 in prior year,” the company said.

Profit after tax surged by 647 percent to $341 billion.

The group’s asset base appreciated by 104 percent to $1,3 trillion from $635,6 billion in December 2022.

“The growth was mainly underpinned by fair value gains on the group’s investment property and cash and bank balances, which translated to the positive growth in the total equity balance,” it said.

Following the government’s implementation of policy intervention measures to address pricing and exchange rate volatility, the company said the operating environment remained steady throughout the third quarter of 2023.

“The measures resulted in stable market conditions though the gap between the official and parallel rates is now increasing.”