TINASHE MAKICHI
Fidelity Life Assurance of Zimbabwe saw its revenue more than doubling to ZWL$45m in the nine months to September from the same period last year on the back of net investment income and balance sheet growth. In the same period last year, revenue from the period was ZWL$18m.
Total revenue performance was further boosted by net investment income, resulting in a 262% growth in total revenues, which closed at ZW$129m compared to ZW$35m in the comparative period,” said company secretary Chipo Matongo.
“The Malawi business and balance sheet growth in Fidelity Life Assurance of Zimbabwe continue to be key drivers of the group’s revenue performance.”
Profit before tax for the group increased 276 percent to ZW$14.8m at September 30 2019 from ZW$3.9m as at September 30 2018.
This is despite total expenses continuing to be weighed down by re-estimation of project completion costs for Southview water works in the wake of the weakening local currency.
Matongo said increase in this provision is, to some extent, offset by increases in value of assets held to hedge this risk, thus enabling the group to still record growth in profits.
Going forward, he noted that 2020 increasingly looks to be another difficult year.
“However, the organisation will move to adapt and implement strategic initiatives to create and protect value for our key stakeholders; clients, shareholders and our employees.
“The group expects to maintain the stable performance recorded so far through to the end of the current year,” he said.
Matongo said the third quarter remained challenging for business as foreign currency shortages persisted resulting in an increase in excess of 100 percent in the official exchange rates from the position at half year.
This resulted in further deterioration in supplies of electricity and fuel, which had ripple effects on industry and commerce at large.
Sharp and persistent increases in prices of goods and services were also observed, depleting disposable incomes available to the average household.
