DIRECTORS: OMtasa (Chairman), M SManyumwa (Deputy Chairman), J M Chikura, Dr CUHokonya, DHoto*, TKhumalo, WM Marere*, J M Matiza, EKMoyo, I P ZNdlovu (* Executive

Directors)
CHAIRMANS STATEMENT
ECONOMIC OVERVIEW
The economic environment during 2013 was characterised by persistent liquidity challenges, declining
inflationandmodest economicgrowth. The countrys Gross DomesticProduct is estimatedto have grown
by 3.4%during 2013 with agriculture estimated to have declined by 1.3%. Industrial capacity utilisation
dropped to 39.6%in 2013 compared to 44.2%in 2012. Inflation was 0.33%in December 2013 against
2.91% in 2012 on the back of weakening aggregate demand, stable global oil prices and continued
depreciation of the South African Rand. Based on the ZimAsset plan, the government expects Gross
DomesticProduct growthof 6.1%in2014drivenbytheminingandagriculturesectors.
TheBotswanaeconomy, wheretheGrouphasareinsuranceoperation, saw GrossDomesticProduct growth
rates increase from4.2%in2012to 5.4%in2013beingledby increasedproductionandhigher prices in
mining. Interest rates andinflationremainedstable while the BotswanaPuladepreciatedby14%against
theUnitedStatesDollar.
ZIMBABWE INSURANCE SECTOR
In 2013, the Net PremiumWritten in the life assurance sector grew by 15%to $258 million from$225
millionin2012withthe sector largelyadequatelycapitalised. The short-terminsurance sector hadan8%
growthfrom$194millionin2012to$210millionin2013. Themajor sourcesof businessfor theshort term
insurancesector weremotor andfireinsurance.
ZIMBABWE PROPERTY SECTOR
Thepropertysectorwitnessedreducedactivityastherewaslimitedlongtermfundingforpropertydevelop-
mentsandmortgagefinancing. Commercial rental rateswereaffectedbyincreasedlevelsof voidsandhigh
operating cost components. Declining occupancy ratios led to property owners absorbing a greater
proportionof theoperatingcosts.

GROUPS PERFORMANCE
Financial highlightsfor theyear ended31December 2013:
31-Dec-13 31-Dec-12 Movement
US$000 US$000 %
Grosspremiumincome 101,101 88,599 14.1
Total income 113,015 92,660 22.0
Profit for theyear after tax 5,978 13,451 (55.6)
Profit attributabletoshareholders 1,627 9,795 (83.4)
Policyholders funds 83,970 71,084 18.1
Total assets 205,211 176,303 16.4
GrossPremiumWritten(GPW) at $101.1millionfor theyear ended31December 2013was14%abovethe
prior year figure of $88.6 million on the back of improved performance across the Group with health
insurance, life assurance and short-termreinsurance businesses being the major contributors in absolute
terms.
Rental incomegrew by6.8%from$7.3millionin2012to$7.8millionin2013drivenbyanincreaseinthe
contributionof turnover-basedrental income. Thelimitedoverall economicgrowthconstrainedtheproperty
market leadingtolow demandfor officeandconventional industrial space. Thepropertymarket continues
tofacechallengeswithlimitedpropertytransactionsbeingrecordedespeciallyinresidential standsandlow
valueproperties.
Theyear-on-year attributableprofit declinedmainlyduetothehigher claimsratiofor thehealthinsurance
business andthe adoptionof amore prudent approachto technical reserves followingthe introductionof
the actuarial control cycle during the year. As a result, the shareholder risk reserves and incurred but not
reportedclaimsprovisionsincreasedby$4.4million(101%) and$1.2million(65%) respectivelycompared
totheprior year. Theactuarial control cyclewill result intheinsuranceoperationsbeingmanagedbasedon
actuarially determined parameters in terms of both technical and shareholder risk reserves, which is
expectedtoleadtomoreefficiency, consistencyandfinancial soundness.
OPERATING BUSINESS UNIT ANALYSIS
Except where indicated, the commentary below refers to unconsolidated gures.
Property
Pearl Properties
Rental incomeincreasedby2%to$9million(2012: $8.8million), duetoamarginal increaseinrental per
squaremetreandhigher turnover basedrentals. Theaveragerental per squaremetreachievedwas$8.25
(2012: $8.18) andtheannualisedrental yieldachievedin2013wasslightlylowerat 7.9%(2012: 8.6%) due
toslower growthinrentalsrelativetotheappreciationininvestment propertyvalues. Thevacancyratefor
theyear 2013was23.3%(2012: 21.1%), aresult of voluntarysurrender of spacebytenantsduetodifficult
operating conditions in their different industry sectors. Investment properties were revalued by an
independent professional valuer andresultedinfair valuegainsof $8.0millioncomparedto2012fair value
gains of $8.9 million. Out of the fair value gains in property recorded in 2013 of $8 million, $6.3 million
relatedtopropertyre-zoningfromresidential tocommercial property.
Life Business
First Mutual Life Assurance Company
Gross PremiumWritten closed the year at $28.1 million, being 26%higher than the prior year figure of
$22.3 million. Employee benefits premiumof $15.3 million was 21%higher compared to the previous
yearspremiumof $12.6millionduetosinglepremiumincomeandnew businesswrittenduringtheyear.
Individual life premiums increased to $12.8 million (2012: $10.1 million) due to an increase in uptake of
products, particularlyfuneral products.
FMRE Life & Health
GrossPremiumWrittengrew by10%to$1.96million(2012: $1.78million) withhealthbusinesscontribut-
ing 66% of the gross premiumwritten whilst Group life contributed 27% and individual life business
contributed 7%. Regional business contributed $940,000 (2012: $186,000) to gross premium, with the
businesscontinuouslyseekingwaystofurther increasethegrosspremiumwrittenfromtheregionin2014.
Medical Business
FML Health Care Company
FML Health Care Company premiumincome grew by 19% to $43.1 million (2012: $36.3 million). The
growth is attributable to a 36% increase in membership from79,242 at the beginning of the year to
107,796 members at year end. The average revenue per member dropped from$40 to $38 as some
membersdowngradedtheir membershipplansduetoliquiditychallenges. Theclaimsratiorosefrom68%
in2012to80%in2013, contributingtothereductioninoperatingprofit from$6.4millionto$1.9millionin
2013.
The Company will continue to seek new business through providing quality service, demonstrated claims
payingability, wellnesscampaigns, innovativeproductsandaffordablepricingtoitsmembers.
Short-term Insurance Businesses
TristarInsurance Company
Gross PremiumWritten decreased by 25%in 2013 to $6.8 million (2012: $9.0 million) as the company
adjusteditsoperationsfromitslegacyissues. Themotor classcontinuedtobethemost significant contribu-
tor intermsof grosspremium(62%), followedbyfire(16%) andaccident (9%).
TheCompanyhasadoptedstrategiestogrow itsbusinessthroughstrengtheningbrokerrelations, enhancing
servicedeliveryandprovidingrelevant riskmanagement advice.
FMRE Property & Casualty (Zimbabwe)
Thebusinessexperienceda14%growthingrosspremiumwrittento$20.1million(2012: $17.6million) as
majorcedantsrenewedtheirconfidenceinthecompany. Themajorgrowthcontributorsweretheincreased
fire andfarmingbusiness, withtreaty business contributing42%(2011: 42%). This growthwas achieved
despitecedantsraisingtheir retentionlimits.
FMRE Property & Casualty (Botswana)
Thebusinesswitnesseda78%jumpto$2.7millioningrosspremiumwritten(2012: $1.5million) following
the recapitalisation of the business in December 2012. The casualty, engineering, motor and fire classes
were the largest contributors to gross premium. Local business accounted for 60% of the total gross
premiumwhilst non Botswana business contributed 40%. The annual growth was a result of growing
market confidenceandincreasedmarketingefforts, resultinginmoreacceptanceinthelocal market.
LICENCING
The Group successfully applied for an investment management license and the new business will start
operations in the second quarter of 2014. Regulatory approval was also granted to merge the two
reinsurance businesses operating in Zimbabwe, under a composite license. The synergies to be realised
fromsuchanarrangement will leadtoastronger reinsurancebalancesheet that canattract morebusiness
frombothlocal andregional insuranceoperations.
NAME CHANGE
At theAnnual General Meetingheldon4June2013, aresolutionwaspassedtochangethenameof Africa
First RenaissanceCorporationLimitedtoFirst Mutual HoldingsLimited.
HUMAN CAPITAL DEVELOPMENT
TheGroupisgoingthroughanorganisational transformationthat isexpectedtoresult inoptimumoperating
structuresaimedat enhancingoperational effectivenessandefficiency.
DIRECTORATE
MrInnocent ChagondaresignedfromhispositionasNon-ExecutiveDirectorandChairmanof theBoardwith
effect from4June2013, thedayI wasappointedChairman. Onbehalf of theBoard, I wouldliketoextend
mysincerethankstoMr Chagondafor hisinvaluablecontributiontotheGroup.
DIVIDEND
Having taken due regard of the Groups cash flow requirements, the Board of Directors recommends a
dividendof 0.1centsper sharetobepaidonor about 30May2014toshareholdersregisteredinthebooks
of theCompanyasat 2May2014. Thetransfer booksandregister of memberswill beclosedfrom3May
to6May2014, inclusive.
CONSOLIDATED STATEMENT OF CASH FLOWS 31-Dec-13 31-Dec-12
FOR THE YEAR ENDED 31 DECEMBER 2013 US$ US$

Prot before taxation 9,558,961 17,966,160
Non-cashandseparatelydisclosableitems 5,433,208 (5,127,513)
Operating cash ows before working capital changes 14,992,169 12,838,647
Workingcapital changes (11,385,614) (2,891,961)

Cash generated from operations 3,606,555 9,946,686
Interest paid (71,460) -
Net interest received 2,358,323 2,211,873
Taxationpaid (2,111,867) (1,002,831)
Net cash ows from operating activities 3,781,551 11,155,728

Net cash utilised on investing activities (10,159,902) (2,187,103)

Net cash generated on nancing activities 538,776 6,613,537

Net (decrease)/increase in cash and cash equivalents (5,839,575) 15,582,162

Movement in cash and cash equivalents
At beginningof theyear 24,199,255 8,617,094
Net (decrease)/ increasefor theyear (5,839,575) 15,582,162
At end of the year 18,359,680 24,199,256

Disclosed as
Cashat bank 4,567,052 8,007,779
Short-terminvestments 13,792,628 16,191,476
18,359,680 24,199,255
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2013
1 Corporate Information
First Mutual Holdings Limited(the Group) is alimitedliability company incorporatedanddomiciled
in Zimbabwe, whose shares are publicly traded on the Zimbabwe Stock Exchange. The principal
activities of the company and its subsidiaries (the Group) are life assurance, general insurance,
healthinsurance, reinsurance, propertymanagement anddevelopment andactuarial consultancy.
TheGrouphasa19.92%interest inRainbow TourismGroupLimited, whichisinvolvedinthetourism
andleisureindustry.
The consolidated financial statements of the Group for the year ended 31 December 2013 were
authorisedfor issue inaccordance witharesolutionof the directors at ameetingheldon21March
2014.
2 Statement of Compliance
The consolidated financial statements of the Group have been prepared in accordance with
International Financial ReportingStandards(IFRS), theZimbabweStockExchangeAct (Chapter 24:18)
andtheCompaniesAct (Chapter 24:03).
2.1 New and Amended Standards and Interpretations
During the year several standards and amendments to standards became effective, most of them
withaneffective date of 1January 2013. Below is adiscussionof the nature andimpact of those
standardsor amendmentsthat theGroupconsiderstoberelevant.

IFRS 10 Consolidated Financial Statements and IAS 27 Separate Financial Statements
IFRS 10 establishes a single control model that applies to all entities including special purpose
entities. The changes introducedby IFRS10require management to exercise significant judgement
todeterminewhichentitiesarecontrolledandthereforearerequiredtobeconsolidatedbyaparent,
comparedwiththerequirementsthat wereinIAS27. Basedontheanalysesperformed, IFRS10did
not haveanyimpact onthecurrentlyheldinvestmentsof theGroup.

IFRS 12 Disclosure of Interests in Other Entities
IFRS12setsout therequirementsfor disclosuresrelatingtoanentitysinterestsinsubsidiaries, joint
arrangements, associates and structured entities. The requirements in IFRS 12 are more
comprehensive than the previously existing disclosure requirements for subsidiaries. For example,
where a subsidiary is controlled with less than a majority of voting rights. The Group has no
subsidiaries with material non-controlling interests and does not have unconsolidated structured
entities. IFRS 12 disclosures where required have been disclosed in the notes to the financial
statements.

IFRS 13 Fair Value Measurement
IFRS13establishes asingle source of guidance under IFRSfor all fair value measurements. IFRS13
does not change whenanentity is requiredto use fair value, but rather provides guidance onhow
tomeasurefair valueunder IFRS.

IFRS 13 defines fair value as an exit price. As a result of the guidance in IFRS 13, the Group
re-assessed its policies for measuring fair values, in particular, its valuation inputs such as
non-performance risk for fair value measurement of liabilities. IFRS 13 also requires additional
disclosures.
Application of IFRS 13 has not materially impacted the fair value measurements of the Group.
Additional disclosureswhererequired, areprovidedintheindividual notesrelatingtotheassetsand
liabilitieswhosefair valuesweredetermined.
IAS 1 Presentation of Items of Other Comprehensive Income Amendments to IAS 1
TheamendmentstoIAS1introduceagroupingof itemspresentedinother comprehensiveincome.
Items that will be reclassified(recycled) to profit or loss at afuture point intime (e.g., net loss or
gainonAFSfinancial assets) havetobepresentedseparatelyfromitemsthat will not bereclassified
(e.g., revaluation of land and buildings). The amendments affect presentation only and have no
impact ontheGroupsfinancial positionor performance.
IAS 1 Clarication of the Requirement for Comparative Information (Amendment)
Theseamendmentsclarifythedifferencebetweenvoluntaryadditional comparativeinformationand
theminimumrequiredcomparativeinformation. Anentitymust includecomparativeinformationin
the relatednotes to the financial statements when it voluntarily provides comparative information
beyondtheminimumrequiredcomparativeperiod.
Theamendmentsclarifythat theopeningstatement of financial position(asat 1January2012inthe
caseof theGroup), presentedas aresult of retrospectiverestatement or reclassificationof items in
financial statements does not have to be accompanied by comparative information in the related
notes. As a result, the Group has not included comparative information in respect of the opening
statement of financial positionasat 1January2012. Theamendment will affect futureperiodsif an
openingstatement of financial positionisprovided.
IAS 19 (Revised) Employee Benets
IAS 19 (Revised 2011) changes, amongst other things, the accounting for defined benefit plans.
Someof thekeychangesthat areapplicabletotheGroupincludethefollowing:
Terminationbenefits will be recognisedat the earlier of whenthe offer of terminationcannot
bewithdrawn, or whentherelatedrestructuringcostsarerecognisedunder IAS37Provisions,
Contingent LiabilitiesandContigent Assets.
The distinction between short-termand other long-termemployee benefits will be based on
expectedtimingof settlement rather thantheemployeesentitlement tothebenefits.
Noneof theabovechangesaffectedthemeasurement of assetsor liabilitiesof theGroup.
3 Reporting Period and Currency
Thereportingperiodis1January2013to31December 2013. Thefinancial statementsarepresented
in United States dollars being the functional and reporting currency of the primary economic
environment inwhichtheGroupoperates.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Non Total Non
Share Share distributable Retained equity for controlling Total
capital premium reserves earnings parent interest equity
US$ US$ US$ US$ US$ US$ US$

As at 31 December 2011 217,124 - 600,068 1,526,090 2,343,282 48,597,931 50,941,213
Issuedsharecapital 163,077 8,469,330 - - 8,632,407 - 8,632,407
Shareissueexpenses - (511,412) - - (511,412) - (511,412)
Acquisitionof interest insubsidiary - - - 563,362 563,362 (797,373) (243,011)
Policyholder gainonacquisitionof Pearl shares - - - (4,361,333) (4,361,333) (2,817,423) (7,178,756)
Dividendpaid - - - - - (374,813) (374,813)
Acquisitionof non-controllinginterest - - - 156,218 156,218 (1,054,852) (898,634)
Other comprehensiveloss - - (395,897) - (395,897) (219,358) (615,255)
Profit for theyear - - - 9,795,098 9,795,098 3,655,942 13,451,040
As at 31 December 2012 380,201 7,957,918 204,171 7,679,435 16,221,725 46,990,054 63,211,779
Transfer tosolvencyreserve - - 59,596 (59,596) - - -
Other comprehensiveincome - - 2,059,473 - 2,059,473 2,036,683 4,096,156
Profit for theyear - - - 1,627,429 1,627,429 4,351,020 5,978,449

As at 31 December 2013 380,201 7,957,918 2,323,240 9,247,268 19,908,627 53,377,757 73,286,384
OUTLOOK
Increasedbusinessconfidenceandanimprovement intheliquiditysituationinthemarket areessential to
ensureastableoperatingenvironment, whichwill improvetheeconomicrecoveryof thecountry.
GoingforwardtheGroupwill improveriskmanagement throughenforcingtheactuarial control cycle, active
management of trade receivables and continuously reviewing the product portfolio to keep the products
relevant and affordable. The Group will continue with its stringent risk assessment approach for money
market investmentswithdepositsbeingplacedwithstablebankingcounterpartiesandequityinvestments
beingmadeintoentitiesthat areconsideredresilient.
APPRECIATION
On behalf of the Board, I would like to extend my gratitude to fellow Board members, the Regulators
(InsuranceandPensionsCommission, SecuritiesandExchangeCommissionof Zimbabwe, ZimbabweStock
ExchangeandtheReserveBankof Zimbabwe), Clients, Partnersandother Stakeholdersfor their rolewhilst
interactingwiththeGroup. Inaddition, myappreciationgoestoall Groupemployeesandsubsidiaryboard
membersfor their commitment insteeringtheGroupduringthepast year.
__________________________
Oliver Mtasa
Chairman
21 March 2014
Audited Abridged Financial Statements
For the Year Ended 31December 2013
First Mutual Park| 100 Borrowdale Road| Borrowdale | Harare | Zimbabwe | P.O. BoxBW178 | Borrowdale | Harare | Zimbabwe
Tel: +263 4 886 000-17 | Fax: +263 4 886 041 | Email:info@firstmutualholdings.com| www.firstmutualholdings.com
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013 31-Dec-13 31-Dec-12
ASSETS Note US$ US$
Intangibleassets 460,733 653,237
Property, vehiclesandequipment 5 12,059,640 21,468,596
Investment properties 6 115,562,001 93,315,999
Financial instruments
- Availablefor saleinvestments 7.1 10,302 622,760
- Financial assetsat fair valuethroughprofit andloss 7.2 25,563,655 16,332,557
Heldtomaturityinvestments 8 3,998,587 659,250
Investment inassociate 9 7,014,047 6,811,351
Inventory 10 1,494,812 323,118
Deferredacquisitioncosts 786,322 582,773
Taxasset 665,718 -
Insurancereceivables 11 7,542,502 6,795,081
Rental receivables 12 720,002 321,824
Other receivables 13 10,973,347 4,217,271
Cashandcashequivalents 14 18,359,680 24,199,255
TOTAL ASSETS 205,211,348 176,303,072
EQUITY AND LIABILITIES
Equityattributabletoequityholdersof theparent
Sharecapital 380,201 380,201
Sharepremium 7,957,918 7,957,918
Non-distributablereserves 2,323,240 204,171
Retainedprofit 9,247,268 7,679,435
Total ordinary shareholders' equity 19,908,627 16,221,725
Non-controlling interests 53,377,757 46,990,055
Long term liabilities
Policyholders' funds 15 83,969,506 71,083,634
Shareholder riskreserves 16 8,806,663 4,373,604
Deferredtaxliability 15,012,542 11,555,600
Borrowings 538,776 -
108,327,487 87,012,838
Current Liabilities
Incometaxliability 226,713 1,383,709
Tradeandother payables 17 13,579,950 15,710,936
Unearnedpremiumreserve 4,191,181 3,202,918
Insurancepayables 18 5,599,633 5,780,891
23,597,477 26,078,454
Total Liabilities 131,924,964 113,091,292
TOTAL EQUITY & LIABILITIES 205,211,348 176,303,072
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013


Note 31-Dec-13 31-Dec-12
US$ US$
INCOME
Grosspremium 101,100,981 88,598,583
Retrocessions (10,610,371) (13,597,621)
Net premium income 19 90,490,610 75,000,962
Movement inunearnedpremiumreserve (1,056,221) (573,543)
Net premium earned 89,434,389 74,427,419
Rental income 7,778,465 7,295,560
Fair valuegains investment property 8,096,037 7,672,536
Investment income 20 6,389,182 2,335,493
Other income 21 1,316,763 929,349
Total income 113,014,836 92,660,357
EXPENDITURE
Claims 22 (49,790,515) (37,562,936)
Commissions (6,359,782) (4,612,093)
Changeinpolicyholder funds 15 (12,885,872) (14,068,389)
Changeinshareholder riskreserves 16 (4,433,059) 12,391,063
Expensesof management (26,635,464) (25,944,251)
Acquisitionexpenses (1,797,058) (1,558,175)
Propertyexpenses (1,685,361) (2,009,890)
Financecosts (71,460) -
Total Expenditure (103,658,571) (73,364,671)

Prot before share of prot/(loss) of associate 9,356,265 19,295,686

Shareof profit/ (loss) of associate 202,696 (1,329,526)

Prot before taxation 23 9,558,961 17,966,160
Taxationcharge (3,580,512) (4,515,120)
Prot for the year 5,978,449 13,451,040
Other comprehensive income/(losses)
Availablefor salereservereclassifiedtoprofit or loss - (205,114)
Exchangedifferencesontranslatingforeignoperations (223,742) (105,119)
Fair valuegain/ (loss) availablefor saleinvestments 3,384 (310,607)
Revaluationof landandbuildings 5,813,533 -
Deferredtaxeffect (1,497,019) 5,585
4,096,156 (615,255)
Total comprehensive income for the year, net of tax 10,074,605 12,835,785
Prot attributable to:
Equityholdersof theparent 1,627,429 9,795,098
Non-controllinginterest 4,351,020 3,655,942
Prot for the year 5,978,449 13,451,040
Comprehensive income attributable to:
Equityholdersof theparent 3,686,902 9,399,201
Non-controllinginterest 6,387,703 3,436,584
Total comprehensive income for the year 10,074,605 12,835,785
Basicearnings/ (loss) per share(UScents) 0.43 4.43
Dilutedearnings/ (loss) per share(UScents) 0.43 4.43
Weightedaveragenumber of sharesinissue basic 380,200,758 221,115,164
diluted 380,200,758 221,115,164
25 Commitments and contingent liabilities
25.1 Commitments
25.1.1 Authorised but not contracted for:
Therewerenocommitmentsauthorisedbut not contractedfor asat year end.
25.1.2 Authorised and contracted for:
The Group, throughits subsidiary, Pearl Properties (2006) Limitedis committedto utilisingfunds raisedat the Initial PublicOffer for the construction
of the Kamfinsa Cluster Housing Development. The funds that are still to be utilised in respect of this commitment amount to $415,460 (2012:
$622,760).
26 Events after the reporting date
26.1 Licences
The Group received regulatory approval, subsequent to year end, to merge the two reinsurance businesses operating fromZimbabwe, under a
composite licence. The synergies to be realisedfromsuchanarrangement will leadto astronger balance sheet that canattract more business from
bothlocal andregional insuranceoperations.
Subsequent toyear end, theGroupwasgrantedalicencetooperateanasset management company.
26.2 Acquisition of land
TheGroupthroughPearl Properties(2006) Limitedacquiredonthe9thof January2014landmeasuring24.0664hectaresbeingtheremainder of Lot
57 of Mount Pleasant, situated in the District of Salisbury Deed of transfer number 3251/ 88 at a cost of $9.6 million excluding transfer fees. The
acquisitionwas fundedthroughacombinationof internal cashflows andafive (5) year loansecuredfromalocal financial institution. Transfer fees
andratechargesof $0.519millionwerefundedfrominternal cashflows.
Theacquisitioncostsof thelandarebrokendownasfollows:
Date Source of Funds US$
30-Dec-13 Internal Cashflows 4,100,000
9-Jan-14 External Borrowing 5,500,000
Total Acquisition Price 9,600,000

Transfer fees[IncludingRates] Internal Cashflows 519,246
Total Cost 10,119,246
The$4,100,000frominternal cashflowspaidonthe30thof December 2013wasaccountedfor under prepayments[seeNote13]
Theloanfacilitysourcedfromalocal financial institutionwill beadministeredunder thefollowingterms;
FacilityAmount US$5,500,000.00
Tenure 5Years
Security Immovableproperty, title0004163/ 2007, beingStand18259HarareTownship
of Stand14908SalisburyTownshipcalledFirst Mutual Parkinthename
of First Mutual Park(Private) Limitedregisteredandstampedtocover $6,500,000.00
Interest Rate BaseRateminus3%p.a. [BaseRateat drawdown 13%p.a.]
Fees Commitment feeof 1.00%
Arrangement feeof 1.00%
Management fee0.5%p.a.
DIRECTORS: OMtasa (Chairman), M SManyumwa (Deputy Chairman), J M Chikura, Dr CUHokonya, DHoto*, TKhumalo, WM Marere*, J M Matiza, EKMoyo, I P ZNdlovu (* Executive Directors)
24 SEGMENTAL RESULTS AND ANALYSIS

Short Property Gross Consolidation Total
Life term Medical & Other Figures Entries Consolidated
US$ US$ US$ US$ US$ US$ US$
As at 31 December 2013
Net premiumearned 29,769,884 17,060,573 42,877,789 - 89,708,246 (273,857) 89,434,389
Rental income - - - 9,012,479 9,012,479 (1,234,014) 7,778,465
Investment income 8,740,896 (177,311) 531,016 6,089,665 15,184,266 (699,047) 14,485,219
Other income 183,565 164,545 232,971 10,871,354 11,452,435 (10,135,672) 1,316,763
Total Income 38,694,345 17,047,807 43,641,776 25,973,498 125,357,426 (12,342,590) 113,014,836
Total expenses (21,988,420) (16,962,507) (41,753,923) (10,296,374) (91,001,224) (12,657,347) (103,658,571)
Noncurrent assets 95,483,870 4,505,255 2,137,324 147,302,111 249,428,561 (84,088,285) 165,340,276
Current assets 12,225,794 15,789,687 7,874,881 12,568,198 48,458,560 (8,587,486) 39,871,073
Noncurrent liabilities 93,275,501 208,729 - 15,982,901 109,467,131 (1,139,644) 108,327,487
Current liabilities 4,166,883 10,979,950 9,033,597 7,126,967 31,307,397 (7,709,920) 23,597,477
Cashflowsfromoperatingactivities 5,519,141 (968,185) 2,144,264 (589,497) 6,105,723 (2,324,172) 3,781,551
Cashflowsutilisedoninvestingactivities (7,727,940) (440,833) 67,374 (1,154,396) (9,255,795) (904,107) (10,159,902)
Cashutilisedinfinancingactivities - - - (417,331) (417,331) 956,107 538,776
As at 31 December 2012
Net premiumearned 23,997,039 14,422,150 36,256,796 - 74,675,985 (248,566) 74,427,419
Rental income - - - 8,830,138 8,830,138 (1,534,578) 7,295,560
Investment income 2,304,484 (384,393) (487,387) 35,520,325 36,953,029 (26,945,000) 10,008,029
Other income 189,737 331,648 118,998 6,001,228 6,641,611 (5,712,262) 929,349
Total Income 26,491,260 14,369,405 35,888,407 50,351,691 127,100,763 (34,440,406) 92,660,357
Total expenses (16,078,501) (15,348,445) (33,800,860) (12,598,449) (77,826,255) 4,461,584 (73,364,671)
Noncurrent assets 86,306,936 4,781,544 2,051,402 139,011,583 234,151,465 (91,704,942) 142,446,523
Current assets 15,588,963 15,607,956 5,820,227 8,380,730 45,397,876 (9,541,327) 35,856,549
Noncurrent liabilities 79,882,488 78,619 (1,281,777) 13,654,864 92,334,194 (5,321,356) 87,012,838
Current liabilities 5,473,139 11,242,060 8,045,335 9,785,411 34,545,945 (8,467,491) 26,078,454
Cashflowsfromoperatingactivities 3,213,459 (1,614,919) 2,144,263 (10,097,643) (6,354,840) 17,510,569 11,155,728
Cashflowsutilisedoninvestingactivities (3,047,685) 4,207,047 (6,145,389) (3,576,046) (8,562,073) 6,374,970 (2,187,103)
Cashutilisedinfinancingactivities 1,486,368 3,330,417 - 8,149,131 12,965,916 (6,352,379) 6,613,537
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 31 DECEMBER 2013
4 Audit opinion
TheGroupexternal auditors, Ernst &YoungCharteredAccountantsZimbabwehaveexpressedanunqualifiedopinionontheGroupsfinancial statements.
ThesignedAnnual Report isavailablefor inspectionat thecompanysregisteredoffice.
5 Property, vehicles and equipment
Ofce Motor Ofce Land &
Equipment Vehicles Furniture Buildings Total
US$ US$ US$ US$ US$
Cost
At 1 January 2012 1,702,969 3,591,099 539,353 18,874,896 24,708,317
Additions 448,318 1,887,330 16,469 27,436 2,379,553
Disposals (111,423) (933,634) (50,343) - (1,095,400)
Impairment losses - (2,696) - - (2,696)
At 31 December 2012 2,039,864 4,542,099 505,479 18,902,332 25,989,774
Additions 166,033 904,300 58,382 64,350 1,193,065
Disposals (11,911) (621,092) (6,139) (320,001) (959,143)
Revaluation - - - 5,126,823 5,126,823
Transfertopropertyinvestments - - - (14,400,000) (14,400,000)
At 31 December 2013 2,193,986 4,825,307 557,722 9,373,504 16,950,519
Accumulated depreciation
At 1 January 2012 554,734 1,617,513 227,277 1,104,550 3,504,074
Chargefortheyear 29,107 774,724 53,395 215,631 1,372,857
Depreciationondisposals (6,260) (348,603) (890) - (355,753)
At 31 December 2012 877,581 2,043,634 279,782 1,320,181 4,521,178
Chargefortheyear 375,293 850,715 60,814 313,227 1,600,049
Depreciationondisposals (6,685) (508,857) (2,495) (25,600) (543,637)
(686,710) (686,710)
At 31 December 2013 1,246,189 2,385,492 338,101 921,098 4,890,880
Carrying amount
At 31 December 2012 1,162,283 2,498,465 225,697 17,582,151 21,468,596
At 31 December 2013 947,797 2,439,815 219,621 8,452,406 12,059,640
6 Investment properties 31-Dec-13 31-Dec-12
US$ US$
Balance at 1 January 93,315,999 84,137,515
Reclassificationsfrom/ (to) property, plant andequipment 14,400,000 -
Improvementstoexistingproperties 229,965 1,505,948
Reclassificationtoinventory (480,000) -
Fair valuegains/ (losses) 8,096,037 7,672,536
Balance at 31 December 115,562,001 93,315,999
7.1 Available-for-sale investments
At 1January 622,760 1,181,283
Purchases - -
Disposals (615,842) (247,916)
Fair valuegains/ (losses) 3,384 (310,607)
Total available-for-sale investments at fair value 10,302 622,760

7.2 Financial assets at fair value through prot and loss
Fair value
At 1January 16,332,557 15,147,043
Purchases 12,241,941 8,721,027
Disposals (6,185,374) (5,166,063)
Fair valuegains/ loss 3,174,531 (2,369,450)
Total nancial assets at fair value through prot or loss 25,563,655 16,332,557
8 Held to maturity investments
At 1January 659,250 -
Purchases 4,250,000 659,250
Redemptions (910,663) -
3,998,587 659,250
9 Investment in associate
The investments in RTG Limited is as follows:

Carryingamount asat 1January 6,811,351 8,140,877
Shareof associateprofit/ (loss) for theyear 202,696 (1,329,526)
Carrying amount of investment in associate 7,014,047 6,811,351
10 Inventory
Propertyheldfor trading 140,150 140,150
Work-in-progressKamfinsaCluster Houses 1,152,034 -
Capitalisedproject cost 672,034 -
Transfer frominvestment properties 480,000 -
Consumables 202,628 182,968
1,494,812 323,118
11 Insurance receivables
Duefrompolicyholders 8,090,337 6,932,961
Duefromagents, brokersandintermediaries 363,787 115,141
8,454,124 7,048,102
Provisionfor credit losses (911,622) (253,021)
7,542,502 6,795,081

12 Rental receivables
Rental receivables 1,706,928 1,087,601
Provisionfor credit losses (986,926) (765,777)
720,002 321,824
13 Other receivables
Sundrydebtors 3,724,476 1,959,330
Staff debtors 1,400,681 1,134,003
Trust Bankbalancereclassifiedtoother receivables 207,399 -
Tenant costsrecoveries 517,074 975,000
5,849,630 4,068,333
Provisionfor credit losses Trust Bankbalance (207,399) -
Receivablesexcludingprepayments 5,642,231 4,068,333

Prepayments:
Prepayments land 4,100,000 -
Prepayments other 1,231,116 148,938
Total other receivables 10,973,347 4,217,271
14 Cash and cash equivalents
Moneymarket investments 13,792,628 16,191,476
Cashat bankandonhand 4,567,052 8,007,779
18,359,680 24,199,255

15 Policyholders Funds31- Dec-13
Balanceat 1January 71,083,634 57,015,245
Policyholder gainonacquisitionof Pearl - 7,178,756
Transfer fromstatement of comprehensiveincome 12,885,872 6,889,633
Balance at 31 December 83,969,506 71,083,634

16 Shareholder risk reserve
Balanceat 1January 4,373,604 16,764,667
Changeinshareholder riskreserves 4,433,059 (12,391,063)
Balance at 31 December 8,806,663 4,373,604

17 Trade and other payables
Tradepayables 7,551,788 7,845,640
Payroll andstatutorydeductions 914,034 1,004,379
Commissions 300,007 227,204
Medical SavingFund- savingspot 3,842,994 3,613,599
Other 971,127 3,020,114
13,579,950 15,710,936
18 Insurance payables
Outstandingclaims 2,531,505 3,918,946
Lossesincurredbut not reported 3,068,128 1,861,945
5,599,633 5,780,891
19 Premium income
Lifeassurance 12,994,528 10,182,781
Medical savingsfund 43,847,781 37,690,195
Employeebenefits 15,772,235 12,602,544
Short-terminsurance 6,651,766 8,986,667
Reinsurance 21,834,671 19,136,396
Gross premium 101,100,981 88,598,583
Less: Reinsuranceceded (10,610,371) (13,597,621)
Net premiums 90,490,610 75,000,962
31- Dec-13 31- Dec- 12
US$ US$
20 Investment income
Interest income 2,358,323 2,211,873
Net gainsondisposal of investments 856,328 2,287,956
Transfer fromreservesondisposal of investments - 205,114
Fair valuegain/ (loss) - equities 3,174,531 (2,369,450)
6,389,182 2,335,493
21 Other income
Tenant interest 199,950 159,307
Dividendreceived 232,510 230,530
Profit ondisposal of fixedassets 89,080 47,021
Actuarial income 140,820 46,084
Feeincome 654,403 446,407
1,316,763 929,349
22 Claims
Medical business 34,452,944 24,510,237
Individual life 5,145,957 3,344,555
Employeebenefits 3,524,583 2,277,085
Surrenders/ withdrawals - 797,358
Short-terminsurance 1,634,712 4,690,137
Reinsurancebusiness 6,656,150 3,826,331
51,414,346 39,445,703
Less: Reinsurancerecoveries (1,623,831) (1,882,767)
Net claims 49,790,515 37,562,936


23 Prot before tax is shown after charging:
Depreciation 1,600,049 1,372,857
Audit fees 334,115 518,878


Audited Abridged Financial Statements
For the Year Ended 31December 2013
First Mutual Park| 100 Borrowdale Road| Borrowdale | Harare | Zimbabwe | P.O. BoxBW178 | Borrowdale | Harare | Zimbabwe
Tel: +263 4 886 000-17 | Fax: +263 4 886 041 | Email:info@firstmutualholdings.com| www.firstmutualholdings.com
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