Staff Writer
HARARE: Fidelity Life Assurance (FLA) says the asset separation exercise is close to completion and is set to be concluded in Q1 2025.
Chairman Livingstone Gwata, in a statement on the group’s 2024 financials, said the business is now wrapping up the paperwork required to fully execute the exercise.
“The exercise brings added transparency and protection to both policyholders and shareholders, especially noting Zimbabwe’s fluid policy environment.
“For policyholders, the separation of assets will unlock more in terms of quantum and value. investment opportunities, sustainable growth and profitability,” he said.
The objective of the asset separation exercise is to ensure compliance with the requirements of the prescribed legal provisions.
According to the pensions and insurance industry regulator, IPEC, the objective behind these legal provisions on asset separation is to ensure that there is no transfer of assets from policyholders to shareholders and vice versa.
The exercise aims to identify assets that may have been misappropriated from policyholders to shareholders or vice versa, quantifying the assets that may have been misallocated and apportioning them to their rightful owners and enhancing compliance with the legal requirements for asset separation as a way of improving good governance in the insurance and pension sector.
In terms of the group’s performance, Gwata said continuous innovation resulted in the group’s products remaining relevant and demand being consistent in its chosen market segments.
The group also says 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,” he said.
Gwata added that Vanguard Life Assurance of Malawi (“VLA”) continued to scale up its operations under new management, and in order to diversify its revenue streams, the unit entered the funeral services and asset management markets.
“VLA has also entered into strategic partnerships both in Malawi and South Africa which are anticipated to have a significant positive impact on its revenues in the medium term,” said Gwata.
He noted that locally, the group’s funeral services business remained firmly on course with its turnaround strategy bolstered by the acquisition of a brand-new fleet, expansion of branches, launching of new products and conclusion of strategic partnerships locally, in South Africa and beyond.
Gwata said the performance of the Asset Management Company in the year under review was buoyed by the spectacular success of the Eagle REIT.
On the other hand, he said ZAC Global made considerable progress in its great trek into the region.
Gwata said the group’s focus on digitalisation and financial inclusion has enabled the company to continue to expand its customer base, improve operational efficiency and drive business growth.
He said during the year under review, the company introduced micro-insurance products that cater to low-income individuals and the informal sector.
“We have partnered with various stakeholders to expand our reach and provide insurance services to underserved communities within our markets.
“We intend to implement a mobile-based insurance platform to enable customers to purchase and manage their insurance policies with just their mobile phones,” he said.
