First Mutual Holdings Limited (FMHL) was awarded the best Turnaround company on the Zimbabwe Stock Exchange for FYE 2016 at the recently held Zimbabwe Independent 2017 Quoted Companies Survey (QCS).
The QCS seeks to measure the performance of firms listed on the Zimbabwe Stock Exchange (ZSE).
FML were given the award after recovering from a loss position of US$131 000 FYE 2015 to post a net profit of US$9,3 million for the year to December 2016 .
First Mutual Ltd had an investment profit of US$8,8 million in 2016 compared to investment losses of US$4,7 million in the previous year, largely due to lower claims, a reduction in impairment allowances and acquisition expenses and full major shareholders support through capital injections .
“The award is testimony to First Mutual Holdings Limited payoff line Go Beyond, all of which is made possible by the continued support from our customers and stakeholders,” FMHL said in a statement.
FMHL has more than a hundred years of service in Zimbabwe and has diverse interests in short term insurance; short term re-insurance; life assurance; long term re-insurance; as well as the property sector housed under the following subsidiaries; First Mutual Life, Pearl Properties, First Mutual Health, Tristar Insurance Company, First Mutual Wealth Management, FMRE Property & Casualty (Zimbabwe), FMRE Life & Health and FMRE Property & Casualty (Botswana.)
First Mutual Subsidiaries have been leading the market in the provision of innovative solutions in the insurance industry. First Mutual Health were the first to introduce bio-metric cards and a health mobile application to ease and smoothen customer services in the health system in the country.
The citation from Quoted Companies Survey (QCS) commended First Mutual Holdings for taking on a number of initiatives to become profitable in a difficult economic environment especially for the insurance industry which is experiencing low insurance uptake and a low penetration rate of 1.5%.
“Coming from a troubled past, saddled with legacy baggage and operating in one of the least favoured sectors currently as their services are deemed a luxury its turn around was no easy job. It started off with management changes, got full support of the major shareholders through capital injections and restructured its operations to manage costs and in 2016 posted a massive growth in profits,” QCS stated in a summarized citation.
“We are especially proud of this prestigious award and will strive to maintain this standard of excellence,” FMHL said.
The 2017 QCS rated how companies weathered the storm in an environment where many companies have either scaled down operations or closed shop, and was held under the theme Adapting to the New Normal.