Fidelity to continually improve products for policyholders

Staff Writer

Fidelity Life Assurance (FLA) says its continues to improve products for the policyholders and enhance them in response to evolving policyholder expectations as well as conditions obtaining in the environment.

Group chairman Livingston Gwata says creativity and innovation were also extended to the choice of the company’s markets and investments as it sought to create and preserve value for policyholders and shareholders.

“One of the flagship investments was the registration of a Real Estate Investment Trust (REIT) which has since been awarded Prescribed Asset status,” he said commenting in the 2023 financials.

He said notwithstanding the challenges in the operating environment, the business witnessed yet another year of growth anchored by organic growth of the existing book as well as acquisition of new business.

The Group also expanded its distribution channels through both traditional and digital means to provide convenience and enable ease of doing business with its various stakeholders.

During the period, Fidelity’s profit for the year surged by 9945 percent to $101 billion driven by growth in insurance contract revenue and investment income.

Gwata indicated that insurance contract revenue recorded a strong growth of 242 percent compared to prior year to $116,6 billion from $34,1 billion recorded in the prior year.

“The impressive growth in insurance contract revenue was on the back of the group’s innovative product development bearing fruits and increased uptake of the company’s products offering on the market,” he said.

“Significant growth in premium inflows was witnessed through the Vaka Yako product contributing 83 percent of the Individual life premiums,” he said.

FLA Zimbabwe operation contributed 62 percent from 56 percent in the prior year while the Malawi operation accounted for 38 percent from 44 percent in 2022.

Insurance service result increased by 280 percent on an inflation adjusted basis and increased by 1598 percent under historical cost underpinned by real growth in insurance contract revenue.

This, the group indicated, is despite an increase in insurance service expenses propelled by the increase in claims and directly attributable costs due to the inflationary environment prevailing in Zimbabwe and the regional business operation.

According to the group, net investment income grew by 91 percent to $70,8 billion compared to prior year’s $37 billion driven mainly by fair value gains from investment property, equities and interest income from money market investments.