HomeBusiness DigestFML feels pinch of last year's financial woes

FML feels pinch of last year’s financial woes

Conrad Dube/Roadwin Chirara

THE financial problems that hit Zimbabwe last year have had a serious knock-on effect on major listed companies’ performances.

Arial, Helvetica, sans-serif”>First Mutual Ltd (FML), the country’s second largest insurance company, was forced to write off $40 billion in respect of investment impairment losses in Trust Holdings Ltd and First Mutual Asset Management Company.

Trust Bank was eventually placed under curatorship and incorporated into the Zimbabwe Allied Banking Group (ZABG), together with two other distressed banks — Royal and Barbican.

First Mutual Asset Management Company is in liquidation after heavy exposure to Royal Bank. FML has written off its exposure in the collapsed asset management subsidiary.

The Reserve Bank of Zimbabwe (RBZ) has come up with a consolidated bank ZABG in which three commercial banks have been amalgamated while other distressed financial institutions are either under curatorship or in liquidation.

FML CEO Douglas Hoto said the losses had weighed down the group although it had recovered strongly to record surplus attributable to shareholders of $21 billion. On post-balance sheet performance, quoted equities of the group doubled in February as a result of the stock market bull-run.

Monthly gross premiums for January amounted to $13 billion, which is within the group’s target, while new business is within budget.

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