BUSINESS REPORTER
Fidelity Life Assurance of Zimbabwe’s revenue in the nine months to September 30,2021, plunged 37% to ZWL$ 1.4bn,largely attributable to weakened property prices, Business Times can report.
Investment income also declined 87% due to depressed property prices.
“.…This explains the decline in total revenue,” the company secretary, Chipo Matongo said.
Matongo added: “The disparity between the official exchange rate and the parallel market rate is presenting a challenge when it comes to conversion of United States dollar-denominated revenue to Zimbabwe dollar as well as the determination of Zimbabwe dollar prices for properties.
“The use of the stable official exchange rate in converting United States dollar fair market values for properties to Zimbabwe dollar resulted in understatement of property values and depressed fair value gains.’’
Matongo said the life assurance businesses continued to be the cornerstone of the group, contributing 85% to group core revenue in the period under review.
The core revenue growth was achieved on the back of new business acquired, and premium reviews in line with the positive economic developments.
Total claims and other expenses, Matongo said saw a marginal decrease of 1% to ZWL$1.415bn in the period under review from ZWL$1.426bn in the prior comparative period.
She said the group’s digitalization drive enabled operating units to underwrite business during COVID-19 induced lockdown periods with minimal disruption.
The group’s other divisions including the medical aid, micro-lending, asset management, funeral services, and actuarial consultancy services, Matongo said witnessed a remarkable growth in USD denominated revenue as they posted a healthy operating profit of ZWL$302m as compared to ZWL$211m in the same period last year.
On the outlook, Matongo said that apart from growing their customer base the Group’s main focus will remain on value preservation.
“Our strategy will continue to drive initiatives that grow our customer base; enhance the customer experience; increase our core revenue and achieve operational efficiencies. Value preservation for all key stakeholders remains a key focus going into the future,’’ said Matongo.
The group reported that they realized 65% saving on the Southview water pipeline project with project costs incurred during the period lowering from ZWL$547.6m to ZWL$190m in the current period as the project reaches its tail end.
In the period under review, the economic landscape was friendly as inflation eased to double-digit figures for the first time in two years as the country appeared on course to tame one of its nemesis for the past two years.
