Fidelity Hails Relative Stability As Net Premiums Surge102%

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By Alois Vinga

LISTED financial services company Fidelity Life Assurance (FLA) has hailed the stability brought about the ongoing economic reforms in the first half of the year amid a good performance which saw net premium recorded surging by 102%.

Presenting the group’s performance this week, FLA board chairman Fungai Ruwende, described the year’s first half as a period of relative stability which spurred the group’s performance.

“Month-on-month inflation averaged 3,2% in the six months to June 2021 resulting in the Consumer Price Index moving up 21%. The Foreign Currency Auction System turned one year in June 2021 and the Zimbabwe dollar has maintained relative stability on the auction platform as it marginally depreciated by 4.3% in the period under review,” he said.

He said during the period, the group recorded net premium written in inflation adjusted terms of $ 441 million, an increase of 102% from $218,3 million recorded prior year attributable to responsible reviews of recurring premiums, new business acquisition and organic growth from the existing book.

“The Life Insurance businesses continue to be the major contributor to total core income growth contributing 83% of total core income. Total income including investment income in inflation adjusted terms declined by 67% to $933,8 million from $ 2,836 million due to insignificant fair value adjustments on investment property and equities,” said Ruwende.

Fair values of the investment property which is mainly driven by movements in the exchange rate benefitted from the stability experienced during the first half of 2021 as compared to the same period prior year.

During the period under review total benefits, claims and other expenses declined by 43%.

The group realised savings on the Southview water pipeline project, with project costs incurred during the period decreasing by 92% as the project reached its tail end.

“To ensure business continuity as well as to afford the Group time to identify a suitable replacement, our current Chief Finance Officer Zvenyika Zvenyika has been appointed Acting CEO,” he added