Old Mutual Zimbabwe’s revenue for the half year to June 30, 2019 jumped 741 percent to $2,4 billion from $290,7 million previously.

Profit before tax rose 671 percent from $66 million last year to $509,2 million on investment returns.

Operating profit – excluding investment returns from excess shareholder funds invested and gains directly attributable to policyholders – increased by 287 percent from $34,3 million to $132,9 million driven by profit growth in the life, banking, short-term insurance and asset management businesses.

Gross written premiums (GWP) grew by 29 percent from $132,6 million in total for the life and short-term insurance businesses due to a combination of improved client retention and new business.

Operating profit for the life business was 451 percent higher than prior period, which management attributed to growth in asset based fees, growth in premium income and foreign currency translation gains.

The short-term insurance business recorded a growth of 543 percent in operating profit largely due to the impact of foreign currency translation gains on assets denominated in foreign currency.

The banking subsidiary – CABS – recorded a profit growth of 195 percent to $61,1 million, up from $20,7 million in the prior comparable period, on the back of growth in net interest income, foreign currency translation gains, and property fair value gains.

Funds under management for the asset management business were up by 139 percent to $6,8 billion attributable to positive investment performance.

The group’s operating and administration expenses were up 76 percent to $80,1 million from $45,5 million previously due to inflationary pressures and the impact of local currency devaluation.

Old Mutual Zimbabwe said it has adopted historical cost accounting, taking cognizance of inflationary pressures in Zimbabwe.