Staff Writer
Fidelity Life Assurance Group delivered a strong financial performance for the year ended December 31, 2025, underpinned by robust insurance revenue growth, improved investment income, and continued strategic execution across its business units.
Insurance revenue rose 46%, driven by innovative product offerings, organic growth, and increased new business uptake.
This momentum pushed total income up by 56%, supported not only by core insurance activities but also by fair value gains from financial assets and investment property.
The Group’s profitability strengthened markedly, with profit for the year climbing to US$7.87 million from US$1.72 million in the prior period.
Shareholder profit more than doubled, rising 106% to US$1.1 million, reflecting strong topline growth and elevated investment income.
Cash generated from operations also surged to US$8.90 million from US$2.17 million, largely underpinned by increased gross premium collections.
Balance sheet growth remained solid, with total assets expanding 63% to US$148.84 million.
“This was primarily driven by a 212% increase in financial assets measured through profit or loss. As a result, return on equity strengthened to 29%, up from 15%, highlighting improved profitability and enhanced returns to shareholders,” reads part of the financial statement.
The Group’s Local Life and Pensions unit remained the anchor of insurance revenue, contributing 72% of the US$16.65 million recorded.
Growth in this segment was largely driven by a more than 70% increase in Individual Life business premiums.
Meanwhile, the Malawi Life and Pensions unit contributed 28% (US$4.7 million) to insurance revenue and played a significant role in boosting total income through fair value gains on financial assets, accounting for 88% of such gains.
Both life and pensions units demonstrated strong cost management, delivering a 134% increase in insurance service results and making a positive contribution to overall Group profitability.
The actuarial services business, which operates as an internal support function, contributed US$0.92 million to Group income. Of this, 90% was generated from related-party services, with the remainder coming from external clients. The unit maintained a positive contribution to Group profit.
In contrast, the medical aid services company recorded a 10% increase in total income, but rising expenses outpaced revenue growth, resulting in a negative contribution to Group profitability.
Similarly, the funeral services unit posted a strong 112% growth in revenue, reflecting the success of strategic initiatives and operational upgrades.
However, increased operational costs associated with these investments outweighed revenue gains, also leading to a negative profit contribution.
Strategically, the Group continued to focus on innovation and expansion. During the year, it introduced three new products, broadened distribution channels, and tapped into new market segments.
Digitalisation efforts gained traction, with investments in artificial intelligence, completion of ICT upgrades, and implementation of a customer relationship management system.
The establishment of an Executive Funeral Centre at 72 Cork Road marked a key milestone in enhancing service delivery. Regionally, the Group scaled up its Malawi operations under Vanguard Life Assurance by introducing new business units in asset management, funeral services, and medical services, alongside new products such as Manga Yaka.
These initiatives also targeted new segments, including the informal sector and diaspora markets, supported by US dollar-denominated products and services.
Looking ahead, Fidelity Life is positioning itself to deepen insurance penetration, particularly within the informal sector, through market-driven products and tailored technology integration, while continuing to expand its regional and international footprint.
