First Mutual eyes funeral business

Published: 12 December 2017

FIRST Mutual Holdings Limited (FMHL) is on the verge of setting up a fully-fledged funeral company, as the group seeks to diversify its business.

The funeral unit, to be named First Mutual Funeral Service (Pvt) Limited, is currently on a recruitment drive and is hunting for a finance manager, branch supervisors, funeral consultants, accounts clerks and undertakers positions.

FMHL group executive officer Douglas Hoto confirmed yesterday that the group would venture into the funeral business, with operations beginning next year.

"Yes, we are doing that (opening a funeral business) and we will start sometime next year. We will be capitalised to run the business," he said.

The formation of a new entity comes at a time the regulator has okayed FMHL's quest to acquire short-term insurer Nicoz Diamond Insurance Limited.

Hoto said the setting up of the funeral company would not affect the new acquisition.

"Nicoz Diamond is a short-term insurance company. It's part of our growth strategy. As well as opening the funeral company, it's also part of our growth strategy," he said.

Companies that enjoy the lion's share of the funeral business include Nyaradzo, Doves and Moonlight.

In the six months ended June 30, FMHL recorded profit of $4,3 million from $2,6 million in the same period last year.

Consolidated gross premium written (GPW) in the period was $61,5 million, up from $60,6 million in the prior comparative period.

The group said the improvement in GPW was a result of growth in the health business, life assurance and property and casualty insurance segments that was offset by the 18% decline in pensions business driven by a slump in single premiums.
- newsday

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