Business Reporter
Fidelity Life Assurance (FLA) has declared a final dividend of US$300 000 amounting to US$0.002754 per share for the year ended 31 December 2024 following a solid performance.
The company in a statement said the dividend is in accordance with the Company’s Dividend Policy of 40% on realised cash shareholder profit.
“The dividend is payable to shareholders registered in the books of the Company at the close of business on 13 June 2025. The last day to trade cum-dividend is the 11th of June 2025 and the ex-date is the 12th of June 2025,” reads the statement.
According to its 2024 Financials, Fidelity said it will continue to innovate and develop new products in order to diversify its revenue streams.
The group said continuous innovation resulted in its products remaining relevant and demand being consistent in its chosen market segments.
The group also said it continued to scale up its operations and has entered the funeral services and asset management markets.
“Fidelity Life Company, as the main operating unit of the Fidelity Life Group, continued to record strong performance, and the continuous innovation resulted in its products remaining relevant and demand being consistent in its chosen market segments,” said chairman Livingstone Gwata.
In terms of financial performance, the group’s insurance contract revenue grew by 44 percent to US$11,4 million compared to US$7,9 million in the prior year.
Gwata said the group’s customised service approach continues to drive uptake of the company’s product offerings on the market.
During the year under review, the Vaka Yako product performed very well and contributed significantly to the gross premium written (GPW) at 85 percent of the premium inflows.
On the premium inflows, the Zimbabwean operation contributed 68 percent for the year under review compared to 62 percent in 2023, whilst for the year under review, 32 percent was attributable to the Malawi operation, which contributed 38 percent in 2023.
“Insurance service result declined marginally by 8 percent owing to higher insurance service expenses incurred compared to the earned revenue,” said Gwata.
For the year under review, the insurance service expenses increased by 68 percent compared to the growth in insurance contract revenue of 44 percent, thereby contributing to the decline in the insurance service result.
Net investment income grew by 54 percent compared to the prior year, from US$5,9 million to US$9,1 million, driven by fair value gains from investment property and interest income from money market investments.
Resultantly, the group profit for the period increased by 178 percent from US$2,3 million in the prior year to US$6,4 million in the current year.
Gwata said the positive profit growth was driven by the increase in insurance contract revenue, investment income and other income.
Looking ahead, Gwata said Fidelity Life Assurance intends to tailor-make products aimed at the diaspora market and the local informal sector.
