Forex business spurs Fidelity

 

LIVINGSTONE MARUFU

 

Listed life assurer, Fidelity Life Assurance  of Zimbabwe says foreign currency writing has spurred  the business in the five months  to May 31, 2021.

In a trading update, CEO Reuben Java said the group remained focused on writing US$ business.

“… Our focus on writing US$ new business has helped to sustain the good performance for this business over the five months.

“We will continue to explore new market segments and implement product adaptations or new innovations altogether to ensure our products remain relevant, as we respond to changing customer needs and circumstances,” Java said.

Revenues for the group  grew 96% to ZWL$450.7m  from ZWL$229.6m reported in the prior comparative period despite losing the first two months of this year due to the Covid-19-induced lockdown imposed by the government to curb the spread of the virus.

The insurance businesses contributed 84% of total core revenue, Java said.

Gross premium written increased by 187% to ZWL$142.3m  from ZWL$49.7m reported in the prior comparative period.

Revenue for the Malawi business increased 74% to ZWL $239m  in the reviewed period  from ZWL$137m reported in the previous period.

Fidelity Life Financial Services contributed 6% to core revenue.

The company’s revenue performance  was 72% higher than the prior comparative period.

The growth was attributed to early mobilisation of funding which helped the business to more than double its loan book from a base of ZW$22m in December 2020.

Operating profit stood at ZWL$120.3m  in the reviewed period from a loss of ZWL$13.9m in prior comparative period.

Java said  management will continue to monitor the operating expenditure for all entities within the group.

The group had a positive cash position amounting to ZWL47.3m.

Java said there was cross selling of products within the group and strict premium debtors management to generate and preserve cash within the group.

Total assets for the group  increased by 4% in real terms  to ZWL$5.7bn  as at  May 31, 2021 from ZWL$5.5bn  as at December 31,  2020 due to fair value gains on equity investments and the revaluation of foreign currency denominated assets.

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