- Life and Pensions business drove performance, with 20% growth in insurance contract revenue
- Individual Life division saw a 45% surge in new retail business
- Micro-lending business recorded a 107% increase in interest income
Harare- Diversified ZSE-listed company, Fidelity Life, has reported an after-tax profit of ZWL90 billion during the first quarter of the 2024 financial year, up from ZWL45.5 billion in the previous year. This strong performance was anchored by the company's flagship Life and Pensions business.
The Life and Pensions business posted a 20% increase in insurance contract revenue, growing from ZWL65.7 billion to ZWL79.0 billion.
The non-performing loans ratio remained at 7%, outperforming the sector's average of 10%.
The group stated that "this segment remains the cornerstone of the Group's success, supported by strategic acquisitions of new business and innovative product development, leading to increased market appetite."
The Individual Life division was a standout performer, with new retail business surging 45% due to the popularity of the Vaka Yako product.
The micro-lending business also recorded a significant increase in interest income, with a growth rate of 107% from ZWL3.2 billion to ZWL6.6 billion compared to the same period in the prior year. This was driven by an expansion in new business.
Fidelity Life has entered into partnership agreements with key strategic partners, paving the way for growth in new markets. Approximately 5% of loan disbursements were allocated to clean energy-related products, demonstrating the company's commitment to sustainable lending practices.
The company's non-insurance businesses, including Actuarial Consulting Services and Asset Management, achieved an impressive revenue growth of 125% to ZWL12.1 billion from ZWL5.4 billion. This growth was fueled by expansion in new business pipelines, complementing the existing streams.
Asset Management funds under management grew by 12% compared to the same period in the prior year. The Eagle Real Estate Investment Trust (REIT) Fund made progress on the Mazowe Mall project and pre-project works in Victoria Falls.
The Fund was also granted Prescribed Asset (PA) Status of USD60 million, providing a profitable avenue for the Group to deploy investments that support regulatory compliance.
The group stated that "as key components of our 'cradle to grave' model, these business units remain vital to our Group's strategic growth and development."
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