Fidelity expands footprint

LIVINGSTONE MARUFU

Fidelity Life Assurance (FLA) is expanding its footprint through a series of strategic alliances and partnerships spanning South Africa and Mozambique, Business Times can report.

The development was confirmed by group managing director Reginald Chihota, who said the insurer’s widening network of partnerships is now a central pillar of its growth strategy.

Chihota noted that these alliances are designed to unlock sustainable cash generation while positioning the business for long-term growth across multiple markets.

“In 2025, we expanded the geographical footprint within the FLA Group, largely through the rollout of funeral services branches to sharpen focus and increase visibility across the economy. We also established booths in high-activity economic zones as part of our ambition to punch above our weight, and we have made significant progress,” Chihota said.

“A key enabler of that strategy has been smart, targeted alliances and partnerships. Among those set for rollout is our South African initiative, designed to scale up the repatriation of deceased Zimbabweans from south of the Limpopo.”

In South Africa, FLA has also entered into a strategic partnership with Royal Insurance, targeting Zimbabwean diaspora communities, particularly in Cape Town, with specialised funeral repatriation services.

Beyond funeral services, the group is positioning itself to tap into diaspora financial flows, with plans underway to facilitate remittances from both South Africa and the United Kingdom, a move that could open a new revenue stream anchored on cross-border financial services.

FLA’s regional ambitions extend into Mozambique, where the group has partnered with a local financial services entity to enter the funeral insurance and micro-lending markets, widening its product offering and customer base.

On the domestic front, FLA has strengthened its bancassurance model through partnerships with NBS Bank Zimbabwe and First Capital Bank Zimbabwe, enabling the rollout of insurance products through banking channels.

“The next key driver is the capitalisation of funeral services,” Chihota said, adding that the group has also made strategic investments in land banks as part of its long-term asset accumulation strategy.

FLA’s expansion strategy is being supported by robust financial growth.

Insurance Contract Revenue (ICR) rose 46% to US$16.65m in 2025, up from US$11.43m in the prior year, driven by organic growth and the continued uptake of innovative insurance products.

The Zimbabwe life and pensions unit contributed 78% to total ICR (2024: 76%), while the Malawi operation accounted for 22%, slightly down from 24% in the previous year.

Insurance service result surged 134% to US$5.48m from US$2.34m, as revenue growth outpaced a 20% increase in insurance service expenses.

Net investment income recorded a significant jump to US$22.07m from US$8.92m, representing a 147% increase year-on-year. The growth was largely driven by fair value gains on financial assets, particularly listed equities in Malawi, where inflationary pressures and currency dynamics triggered upward revaluations.

Profit for the year climbed 358% to US$7.87m, compared to US$1.72m in 2024, reflecting the combined impact of rising insurance revenues and strong investment returns.

Chihota said global geopolitical tensions are reshaping consumer behaviour, with households increasingly prioritising financial products that offer certainty, security and long-term protection.

Within this context, FLA’s life and pensions business, anchored on a cradle-to-grave philosophy,is strategically positioned to meet growing demand for financial security solutions.

Complementing this, the funeral services segment remains a critical anchor of stability.

“Death is the only unavoidable certainty in the life cycle. It provides a dependable revenue base while also driving cash generation through the creation of new market segments,” Chihota said.

“The funeral services business has elevated the standard of a dignified burial into a baseline expectation, while offering premium enhancements for clients seeking more elaborate arrangements.

The group’s actuarial function is increasingly playing a strategic role, following significant investment in technology aimed at enhancing operational efficiency, analytical capability and turnaround times.

Leveraging these capabilities, FLA is accelerating its expansion into continental African markets, drawing on synergies within the Zimre Holdings Limited reinsurance cluster to support regional penetration and cross-market business development.

The actuarial unit has also diversified beyond traditional statutory work into banking-related actuarial services and specialised advisory mandates — a move expected to strengthen revenue resilience and unlock new growth opportunities in data-driven risk management.

Reflecting improved financial performance and stronger cash generation, the board has recommended the declaration of a dividend.

Looking ahead, FLA expects continued growth, anchored on deepening its value proposition and expanding into underserved and marginalised markets where access to financial security remains limited.

The group also plans to scale its presence within diaspora markets while strengthening its position in existing jurisdictions.