- Profit for the period rocketed by 1532% ahead of prior year
- Total core revenue doubled driven by life assurance businesses which contributed 82%
- Total income soared by 393% driven by premium income, fair value adjustments from investment property and equities.
Harare- 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 promising and turmoil.
During the period under review, government through the Reserve Bank of Zimbabwe (RBZ) passed hawkish fiscal resolutions to curtail instability through maintaining a tight monetary position and spiking repo rates. The measures though managed to restore some form of stability were met with mixed reactions from the business community. Despite having notable strides in curtailing black market activities and arbitrage opportunities that has been fuelling inflationary pressures, the polices also posed a significant threat on 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.
Life and pension business remained on in track as all business lines grew by close to 100% ahead of 2021.
The non-insurance business remained bullish on the back of insistent business growth initiatives and cross-selling activities within Group.
“Our business is expected to cap the year on a positive trajectory of business growth as they respond to unfolding market trends to offer the appropriate products services and solutions to our client, “the Group said in a statement.
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