Fidelity profit doubles
BUSINESS REPORTER
Fidelity Life Assurance of Zimbabwe more than doubled its profit to ZWL$2.3m in the six months to June 30, 2022 attributed to strategies the company adopted during the reviewed period.
In the same period last year, Fidelity reported a profit ZWL$934,076.
We believe the strategies we adopted in our business units are increasingly bearing fruit. Our endeavours to grow United States dollars revenue, increase product offering, and customer base have created a strong platform to launch our growth into the future,” board chairman, Livingstone Gwata said.
He added: ‘’Key milestones in the period under review include launching a microfinance product that provides US$ loans to vendors in various cities and the solid commercial traction of the Vaka Yako product since its launch to the public on March 22, 2022.These milestones have increased our US$ market share in terms of loan book size and gross written premium respectively.”
Gwata said the group gained new customers and partners, secured new contracts, expanded into new territories, and continued to grow its market share in target markets on the back of the successful implementation of the strategies.
Total income for the group soared 379% to ZWL$13m in the reviewed period from ZWL$2.7m achieved in the prior comparative period, anchored by the life insurance business which was the major contributor to total core income growth contributing 80% of the total.
Net premium written stood at ZWL$1.2m, reflecting a 3% increase on the back of regular reviews of recurring premiums, new business acquisitions and organic growth from the existing book.
However the group saw a surge in total benefits, claims and other expenses in the reported period which soared 300% to ZWL$10.6m from ZWL$ 2.6 m in the same period last year, on the back of significant movements in actuarial liabilities.
In the outlook, Gwata said the group would continue to explore the synergies created by its diverse group as part of the multi-brand integration strategy.
Gwata said he is anticipating interest rates to be reviewed downward on the back of the recent stability, which is a result of a tight monetary policy stance employed by the authorities.
“Overall, we expect the macroeconomic environment to remain challenging with inflation remaining undesirably high through to the year end,’’ he said.
