FIDELITY Life Assurance of Zimbabwe posted a 481% growth in revenue in the first four months of this year, driven mainly by increases in net premiums received and investment income.
A trading update presented by Fidelity managing director Reginald Chihota at the group’s annual general meeting yesterday, stated that the rise inrevenue was driven by increases in net premiums received and investment income.
“The group’s historical revenue for the four months to April 2023 registered a growth of 481% in comparison to the prior year period and this was driven mainly by increases in net premiums received and investment income,” he said.
Chihota said the growth in net written premiums was underpinned by new business, as well as strong performance registered by the life book which benefited from timely inflation-related premium reviews aimed at preserving value for the policyholders.
Investment income was mostly attributable to fair value gains on equities. During the period under review, the business also recorded an increase in USD-denominated revenue.
The group’s non-insurance businesses, which include micro-lending, asset management, funeral services and actuarial consultancy services, contributed 11% of total revenue.
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“These businesses continue to provide services within the group and to third parties. Historical group’s expenses increased by 537% compared to the same period prior year,” Chihota added.
The group's total expenses were driven by benefits paid on claims, changes in insurance contract liabilities and operating expenses.
The major driver of the increase in operating expenses was largely inflation related, exchange rate movements, while net benefits paid and claims were driven by retrenchments and death claims.
“The operating environment continues to be dynamic and fluid. The business looks forward to rising up to the challenges and ensuring we adjust our products and target the appropriate market segments so that we remain relevant,” Chihota said.