Financial services giant, Fidelity Life Assurance of Zimbabwe has recorded a solid financial performance during the nine months ended 30 September 2022, in an economic environment that was both tumulus and promising.
During the period under review, government through the Reserve Bank of Zimbabwe (RBZ) passed hawkish fiscal resolutions to curtail instability by maintaining a tight monetary position and spiking repo rates. Although the measures managed to restore some form of stability, they were met with mixed reactions from the business community. Despite having notable strides in curtailing black market activities and arbitrage opportunities that had been fuelling inflationary pressures, the policies also posed a significant threat to customers’ purchasing behaviour and impeded productive lending.
It is from this background that the Group posted a strong financial performance which it expects to continue climbing throughout the 2022 fiscal year.
Total core revenue for the Group doubled by 100% driven by the life assurance businesses which contributed 82% from 78% in 2021 underpinned by growth in individual life business due to an increase in the uptake of the Vaka Yako investment product premiums, aggressive premium reviews and employee benefits premium income growth as a result of salary increases, indexed business and foreign currency denominated products.
Non-insurance businesses contributed 18% to the core revenue with the micro-lending business spurring the non-insurance revenue contribution by 43%.
Total income soared by 393% driven by premium income, fair value adjustments from investment property and equities.
Resultantly, profit for the period rocketed by 1532% reflecting a change in investment properties valuation methodology from USD valuations in 2021 to ZWL valuations during the period under review.