• The flagship unit contributed 85% of total core revenue

  • Core revenue grew by 121% from ZWL506.8m

  • However, depressed property prices weighed on total revenue, investments

  • Claims and benefits up 216% owing to COVID-19 restrictions

Listed financial services company, Fidelity Life posted a 121% core revenue growth of ZWL1 121.4 million for the nine months ended 30 September 2021 from ZWL506.8 million recorded during the same period last year owing to new business acquired, premium reviews in line with economic developments and digitalisation which shrugged the impact of COVID-19 induced lockdowns.

Of the 121% growth, the Group’s life assurance businesses contributed 85% while also seeing a steady growth in US dollar denominated revenue.

Claims and benefits grew by 216% against the prior year during the same period due to COVID-19 related claims, emanating from retrenchments, increased withdrawal benefits and increased annuity pay-outs.

Meanwhile, operating profit for the nine months under review grew by 43% to ZWL302.4 million from ZWL211.2 million recorded last year.

The Group’s Southview water pipeline project costs incurred during the period lowered by 65% from ZWL547.6 million last year to ZWL190.0 million in the current period as the project reached its tail end.

However, the total revenue for the Group tumbled by 37% to ZWL1,445.2 million during the reviewed period while investment income plunged by 87% due to depressed property prices which resultantly weighed on the Group’s total revenue.

“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,” the Group said in a statement accompanying the trading update.

Claims and expenses decreased by 1% from ZWL1, 425.7 million to ZWL1, 414.6 million.

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