Reuben Java appointed Fidelity Life Group CEO, as profit jumps 100% in half year 2017

Reuben Java appointed Fidelity Life Group CEO, as profit jumps 100% in half year 2017

Insurance24 Reporter

HARARE, Fidelity Life Assurance Zimbabwe Limited net premiums for the interim six months ended 30 June 2017 declined 28% to $6.06 mln compared to $8.44 mln same period in 2016.

This was largely due to non- remittance of premiums by some policyholders and the discontinuance of some product lines on account of unfavorable actuarial projections.

However, interest income from sale of residential stands as well as fair value gains in the Group’s equity portfolio saw revenue increasing 18% to $13.09 mln from $11.12 mln comparable in 2016.

As a result, after tax profit registered a massive 100% jump to $1.98 mln compared to $985,253 in prior year same period.

“The increase in profitability was on the back of improved investment performance and cost cutting initiatives,” said Chairman Fungai Ruwende.

He said that continues to record high claims due to harsh operating environment as well as high value claims incurred.

The Group’s flagship subsidiary, Fidelity Life Assurance of Zimbabwe contributed 37% to total revenue with an amount of $9.5mln, an increase from $8.3 mln last year.

Net premium for the unit was $4.48 mln compared to $7.6 mln same period last year while profit amounted to $1.3 mln from $0.5 mln. This was a result of increases in investment income and cost management. The company did not realize income from stands sales during the period.

In Malawi, Vanguard Life Assurance contributed 15% to group revenue with premium income at $1.6 mln from $1.1 mln, resulting in total income closing the period at $2mln up from $1.4 mln last year same period. The company managed a profit of $80, 000 after accounting for $560, 000 exchange losses.

Fidelity Life Financial Services micro-lending business maintained interest income at $1.3 mln which was largely same as prior year. The unit’s contribution to group revenue was 10% while profit was $645,000, a 15%improvement from prior year.

Other subsidiaries, the actuarial unit had a profit of $50,000 while the funeral services and asset management losses of $46,000 and $80,000 respectively.

Meanwhile, the group has appointed Rueben Java Group chief executive officer effective 1 October 2017.