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Fidelity Life Assurance still working on asset separation and aims to conclude in Q1 2025
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.
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CABS commits more funding in key sectors of the economy
Staff Writer
Banking unit CABS says it is committed to playing its part in the economic development of the country and, as a financier, has provided working capital and capital expenditure loans to the productive sectors of the economy.
Managing Director Mehluli Mpofu, in a statement of financials for the year ended December 31, 2024, said CABS was active in the agriculture and mining sectors as well as infrastructure development in 2024.
“In support of availing funding to propel growth in the country, CABS renewed its US$40 million facility with Afreximbank and increased its facility with the Trade and Development Bank to US$50 million. “The deployment of this funding into the productive sectors of the economy resulted in employment creation, an increase in the tax base, and enhanced food security for families,” he said.
Mpofu also said the society was also active in promoting trade and development through tailor-made trade facilities that enabled beneficiaries to seamlessly import materials and capital equipment.
Apart from investing in the economy, CABS has remained steadfast in its commitment to corporate social responsibility (CSR), embedding sustainability and community investment at the core of its operations.
Mpofu said initiatives in the reporting period spanned across key areas such as education, healthcare, environmental conservation, sports, the arts and financial literacy.
“During the year, CABS took a bold stand in the fight against cancer, focusing on breast cancer and childhood cancer, as well as prostate and testicular cancers.
“Recognising the critical importance of early detection and access to treatment, we supported awareness campaigns and donated chemotherapy drugs to assist those in need.
“Through these efforts, CABS not only provided tangible support to patients but also fostered a culture of proactive healthcare within communities,” he said.
He noted that environmental sustainability remains a key pillar of the CABS CSR strategy, and the society actively participated in tree planting initiatives to promote sustainability and combat deforestation.
“Through partnerships with key stakeholders, CABS contributed to national reforestation efforts, reinforcing its commitment to a greener future.
“This dedication to sustainability was recognised in December 2024 when CABS received the Environmental, Social, and Governance (ESG) Award for Inclusive Development of Sustainable Development Goals (SDGs) at the Zimbabwe National ESG and CSR Achievement Awards.
“Through these efforts, CABS continues to create meaningful and lasting impact across Zimbabwe,” said Mpofu.
In terms of financial performance, CABS achieved satisfactory performance on the back of increased non-funded income, bolstered by payment transactions in key economic segments as well as foreign currency translation gains.
Mpofu said the digitalisation strategy resulted in a positive customer experience by widening transaction channel options.
“We added USD account transacting capabilities to our digital channels in response to growing customer demand, which was positively embraced.
“We continued to support the borrowing requirements of our customers through a combination of local funding and offshore lines of credit,” he said.
He noted that the introduction and growth of USD digital lending channels such as EezyCredit and FlexiCredit supported CABS’ lending activities during the year.
The Society’s surplus for the year dropped by 54.8% to ZiG822.23 mln, and the drop was mainly due to a decrease in other income from ZiG2 304.04 mln to ZiG450.51 mln.
“The main contributor to the decline was the impact of the change in functional currency from local currency to USD, resulting in exchange gains and fair value losses on investment properties declining by ZWG 1 287.08m and ZWG 478.03m, respectively,” said Mpofu.
Net interest income declined by 2.83% to ZWG652.28m (2023: ZWG671.30m), while net fee and commission income increased by 17.48% to ZWG1 184.93m (2023: ZWG1 008.63m).
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Zimre Holdings to raise capital from Botswana and VFEX
Staff Writer
ZIMRE Holdings says group insurance revenue amounted to US$61.86 million in 2024 compared to US$50 million in the prior year, and the bulk of it came from reinsurance business, which accounted for 78 percent.
This was followed by life and pensions business at 18 per cent and short-term insurance at 4 percent.
Net investment income was US$12.62 million, while non-insurance income amounted to US$13.54 million. The group’s profit after tax for the year grew 471 per cent to US$10.33 million.
ZHL Chief Finance Officer (CFO) Zvenyika Zvenyika said Mozambique’s RE grew 54 per cent following the recapitalisation of the business to the tune of US$2 million.
The Botswana business achieved a double-digit jump in premium income of 38 per cent after the conclusion of the amalgamation of the two entities.
“We used to have two entities operating in Botswana, so we amalgamated those into one operating unit.
“Zambia has a growth of 30 per cent, and it’s really driven by external business and increased shares, and also the new business line that they have introduced there,” he said.
Zvenyika said Malawi’s situation followed in the footsteps of Zimbabwe in terms of what is happening in the economy, and there was no growth because of currency issues.
“However, we are really excited about that business in terms of its contribution to the group revenue,” he said.
Zvenyika said the reinsurance segment is now making strides into North and Central Africa, and this will solidify its contribution to the revenue of the group.
Group chief executive Stanley Kudenga outlined the group’s key focus areas for 2025, emphasizing topline growth, consolidation, and strategic acquisitions.
He said the company’s growth strategy is anchored on expanding its presence in Africa, leveraging data-driven decision-making, and investing in IT and data management.
ZHL said the group will in the second quarter, 2025 will embark on a capital raise programme to solidify Emeritus Re, which will anchor the group’s expansion plans.
The company’s growth strategy is anchored on expanding presence in Africa, leveraging data-driven decision-making and investing in IT and data management.
“We are going for momentum in terms of what we are planning for top line growth and consolidation, and we are going to have a high appetite for acquisitions, and you will see us looking around for new acquisitions that will drive our growth.
“But the big one is Africa and we have done the housekeeping issues in terms of amalgamating and setting the trajectory from the regional operations,” he said.
Kudenga said the group will start to engage the investors to bankroll the expansion project, and during the second quarter, is going to embark on a capital raise initiative to support the Africa Trek out of Botswana and the Victoria Falls Stock Exchange (VFEX).
“We are already doing something in Ivory Coast, and we are looking to expand our services in Mozambique in terms of insurance broking and microfinance.
“Apart from reinsurance, we also have other ancillary services that we provide within the group, such as asset management, and we have already set up in Malawi,” he said.
He said the life and pension business segment also recorded strong insurance growth of 45 per cent, and this was really underpinned by the innovative product development that the business has been implementing.
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Transporters welcome ICZ emergency call centre
Staff Writer
HARARE, The Passengers Association of Zimbabwe national coordinator Mr Tafadzwa Goliath has said the introduction of a toll-free line is a welcome development, offering vital support to those in need, particularly when navigating claims or services.
This follows the launch by the Insurance Council of Zimbabwe an integrated emergency call centre (591) aimed at expediting response to emergencies and at the same time ensuring insurance mobilisation.
Goliath said this forward-thinking initiative has the potential to elevate customer experience by providing a convenient and accessible channel for customers to seek help.
“It will streamline response times, enabling quicker resolution of issues and concerns at the same time extend support to remote areas and individuals with limited mobility,” he said.
He said the toll-free line is a valuable resource for those seeking assistance, and it’s commendable to see organizations prioritizing customer service.
Fradreck Maguramhinga, president of the ZUDCO Commuter Services Association, said as transport associations, they welcome the call centre initiative, saying it will go a long way in providing emergency responses during accidents.
“We are happy because we will be getting the services of the funds we pay through passenger insurance. We will be able to get access to ambulances, which has not been the case in most cases where victims are being transported by well-wishers in most cases who do not have the requisite training of paramedics,” he said.
Maguramhinga said the initiative will require support from all Zimbabweans, as it will go to assist in rendering emergency services across the country.
He said the associations will continue to encourage compliance by commuter omnibuses and ensure the 13,000 unregistered commuters are properly registered and contribute through the passenger insurance.
According to ICZ chairman David Nyabadza, the call centre, which will be accessible free by dialling 591 from any of the country’s networks, is directly integrated with critical emergency services, such as the Zimbabwe Republic Police (ZRP), ambulance services, insurers and government agencies.
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ICZ launches integrated call centre 591
Staff Writer
Harare, The Insurance Council of Zimbabwe (ICZ) has launched an integrated emergency call centre (591), accessible free across the country’s networks and linked to critical emergency services.
Chairman David Nyabadza, at the launch said the toll-free call centre is directly integrated with critical emergency services, such as the Zimbabwe Republic Police (ZRP), ambulance services, insurers and government agencies.
“This integration will ensure coordinated responses to emergencies, saving precious time but, more importantly, lives.
“Apart from that, it is a critical component of the national financial inclusion strategy and addresses the pillar of social protection in the National Development Strategy 1 (NDS1),” he said.
ICZ, an association of short-term insurers and reinsurers in Zimbabwe, registered and licensed by the Insurance and Pensions Commission (Ipec), currently has a membership of 20 insurance companies and 9 reinsurers.
Nyabadza said ICZ is aware that members of the public, particularly passengers in public service vehicles, are often uninformed about the insurance coverage they have in the event of an accident.
“This initiative, we believe, will be able to bridge that knowledge gap, fostering transparency, efficiency and crucial support to all those that are affected in an accident.
“We invite all Zimbabweans to embrace the service, not just as a helpline but as a lifeline, and we believe that 591 will not only transform emergency responses in Zimbabwe but will also take precedence in how insurance and emergency services can collaborate to provide real-time solutions to those that are in need,” he said.
Nyabadza highlighted that in today’s world, sustainability is not just an objective, but it is a necessity, and ICZ has long recognised that true sustainability goes beyond just making money.
“It must create meaningful social impact in every country driven by a profound desire to make significant social impact.
“This has led to an ICZ groundbreaking initiative where we are launching a unique national integrated call centre that will revolutionise responses to emergencies across Zimbabwe.”
Nyabadza added that this is a testament to what ICZ can achieve through innovation, collaboration and a shared commitment to the welfare of the public.
ICZ chief executive Donald Muthe said as we reflect on where we are and where we aim to go, we must acknowledge the evolving role of the insurance industry in shaping the world around us.
“This is presenting us with an incredible opportunity to take our position as the representative of the non-life insurance sector and lead with purpose.
“The transformative strategy we are implementing for our CSR initiatives is designed to go beyond the conventional understanding of “doing good.” It’s about embedding sustainability, positive social impact, and ethical responsibility into the very core of our operations and culture.,” he said.
He noted that over the years, ICZ has invested in economic initiatives in line with non-life insurance business and social needs that have made heart-warming changes in the beneficiaries’ lives who are mostly the socially and economically disadvantaged.
He said the CSR strategy is also being aligned the internationally adopted SDGs and ESG Frameworks as well as our National Development Strategy 1 which is now moving to its second phrase.
Muthe said ICZ is actively addressing the economic, environmental and social challenges, contributing to the sustainable development of the communities.
He noted that through the transformative CSR strategy, ICZ continues to intentionally invest in purposeful business practices that will in the long run strengthen and continually improve the non-life insurance service provision.
“We aim to build trust and confidence in the public through offering insurance services that show commitment and deliver a unique value to ours stakeholders.
“This is what has led to this gathering where we are proudly launching our Call Centre and help desk for free use by the public to assess emergency assistance and access to insurance services and information.
“The facility will also provide much needed assistance to assessing insurance compensation.”
Saturday, Apr 19, 2025
