Residential stands boost Fidelity Life in H1

Residential stands boost Fidelity Life in H1

By Insurance24

HARARE, Strong revenue performance from residential stands sales and a solid growth in premiums lifted Fidelity Life out turn for the half year ended June 30, 2018.

Stand sales amounted to $12 million while gross written premium went up 43 percent as a result of refocusing the sale and distribution function.

“Therefore, the two revenue lines at 83 percent contribution to total revenue, $25,7 million, remain the dominant revenue line,” said F Ruwende, the Group chairman in a statement of the results.

He said the positive trends in revenue were however countered by poor performance on investments as fair value losses of $1,2 mln were recorded on the equity portfolio held by the group, compared to gains of $1,6 mln recorded during same period in 2017.

“Overall, however, the group’s performance was strong with a 97 % increase in revenue recognized in the in half year to June 30, 2017,” he said.

Gross claims reduced by 11 percent from $2,8 million to $2,5mln. However, group after tax profit for the year was at $2,3 million compared to $1,9 million same period prior year.

In terms of operation, the group’s flagship, Fidelity Life Assurance posted a growth trajectory with premium income increasing 43% to $6,7 mln up from $4,7 mln in the period under review.

Contribution to property from property transactions also included interest income on the related receivables, which grew 23% to $2,8 mln compared to $2,3 mln in the comparative period.

Vanguard Life Assurance had an impressive premium income growth of 40% to close the period at $2,3 mln against $1,7 mln. VLA continues to contribute marginally to group profit due to regulatory measures that tend to increase insurance contract liabilities significantly.

Non-Insurance subsidiaries, the micro finance continues to excel, predominantly due to organic growth of its loan book.