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Business Reporter
FIRST Mutual Health has achieved a seven percent growth in gross premium to $25,8 million driven by increased membership, the group said yesterday. In its unaudited interim financial results for the half year ended June 30, 2015, First Mutual Holdings said its medical aid fund membership for the period rose to 114,729 from 111,538 in the prior period.

“First Mutual Health Company’s gross premium written grew by seven percent to $25,8 million on the back of increased membership. Valid membership at June 30, 2015, was 114,729 compared to 111,538 members in the prior period,” said the group. It said the average monthly premium per member for the period under review of $37,47 was higher than the prior period average monthly premium of $36,23.

“The total claims incurred during the period increased marginally by three percent from $22 million to $22,7 million resulting in the claims ratio decreasing to 88 percent. The company will continue to seek new business through providing quality service, demonstrated claims paying ability, wellness campaigns, innovative products and affordable pricing to its members,” the listed firm said.

On pension operation, the group achieved gross premium written of $15,6 million, a decline of four percent relative to the prior year. It said the gross premium written from shareholder risk business at $6,9 million grew by two percent compared to the same period last year. “The growth in the funeral cash plan premium for the period ended June 30, 2015, was largely attributable to new business acquired during the period. The policy holder business achieved gross premium written of $8,7 million, a decline of nine percent from the prior year,” said First Mutual.

The decline of policy holder gross premium from prior year was a result of lower recurring premiums following retrenchments last year and non-payment of contributions by some companies due to financial constraints.