Fidelity Life to pursue regional opportunities to de-risk from Zim’s hyperinflation
HARARE, Fidelity Life Assurance of Zimbabwe says it will continue exploring and pursuing opportunities in the region for geographical diversification and de-risking from Zimbabwe’s hyperinflation with great focus on Vanguard Malawi being brought to bear.
Fidelity Life CE Reuben Java, during the company’s annual general meeting (AGM) on Friday said regional lockdown has been a commercial dampener for the groups’ strategic thrust and given the increasing contribution of vanguard life Malawi to the group areas of will include market segmentation, review of product mix and suitability and channel effectiveness, creation or discovery of new markets with significant size databases (MNOs, exporting localbusiness knowledge).
“Most of these were largely done in Quarter One. Cost management and increasing technical bandwidth at Vanguard Life have also become very important. Regional lockdown has been a commercial dampener for our strategic thrust. However, we will continue to explore and pursue opportunities in the region for geographical iversification and de-risking from Zimbabwe’s hyperinflation,” he said.
As the group remains confident that the strategies being put in place will maintain the stable performance recorded so far through to the end of the current year and into the future, Java pointed that the group had shifted some of its strategic priorities in order to adapt the organization to a new world and build a new level of resilience so that we remain future fit in the face of Covid 19.
He said the group was accelerating completion of its digitization strategy which will be interfaced with a fully integrated contact centre.
“The objective is to create a single view of the Group’s customers, enabling seamless service provision to our customers, enabling user-friendly access by customers to all our products and services from their electronic gadgets of choice, wherever they may be at any one point,” he said.
Meanwhile in the four months to April 30 2020 total revenue grew 1,037% to ZWL$413,3 million for ZWL$36,3 million same period last year with core revenue at ZW$70,4 million constituting 17% of total revenue.
The balance of 83% was made up of investment income. Gross Insurance Premium which now makes up 77% of Core revenue, recorded a growth to ZWL$54,5 million from ZWL$11,3 million.
“The gross premium income is split 28% and 72% to FLA and VLA, respectively. The increased contribution by VLA reflects the value of having a foreign asset when faced with hyperinflation in-country.
Revenue from the other subsidiaries (microfinance, asset management,medical aid and actuarial services) making up 23% of Core Revenue contributed ZWL$15.9 million, themselves showing a 217% increase from ZWL$5 million as at 30 April 2019,” Java said.
During the period investment income increased to ZWL$346 million, from ZWL$22 million boosted by fair value gains from investment properties.