PERIODIC premium reviews and leaning towards US dollar revenue generation, among other measures drove Fidelity Life Assurance’s net premium written growth for the financial year ended December 31, 2022.
The move to lean towards US dollars is meant to keep up with the volatile economic environment. The gains on investment property showed the reflective nature of this asset class in response to the macroeconomic environment.
In a statement accompanying the financial results for the period, total income grew by 45% in inflation adjusted terms to $16 514,9 million from $11 359,2 million recorded in the prior year and under historical cost a growth of 523% was recorded from $4 979,2 million to $ 31 016,6 million recorded in the current year.
The strong income growth was underpinned by core business net premium written and investment income which increased by 230% and 475%, respectively.
Group chairperson, Livingstone Gwata said growth in net premium written from $982,1 million recorded in prior year to $3,2 billion was above the inflation rate which stood at 243,76% as at December 31, 2022.
“The growth is premised on regular reviews of recurring premiums, product modifications, new market segments and leaning towards generating US$ revenue to keep up with the volatile economic environment. The gains on investment property show the reflective nature of this asset class in response to the macroeconomic sphere. On an inflation adjusted basis, total benefits, claims and other expenses increased to $15,678 million from $10,060 million and under the historical cost terms, an increase of 571% was recorded from $3,148 million to $28,990 million on the back of significant movements in actuarial liabilities reflecting the growth in assets backing the policyholders’ liabilities.” he said.
The net claims ratio closed the year at 41%, while operating and administration expenses were on the increase driven by the obtaining inflationary pressures.
Gwata said during the period, deliberate focus was placed on understanding both broad and individual needs of selected market segments resulting in the development and introduction of a wide array of tailor-made products during the year.
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Gwata added that value creation, growth and preservation of policyholders and shareholders investments remained at the centre of all the groups’ operations.
“The FLA team remains focused on executing the business model of resilience and growth centred on providing adaptive insurance, health and financial services solutions driven by customer’s needs in the obtaining operating environment. The focus on innovative products is intended to maximise long-term value creation for our stakeholders. The diverse and disruptive products introduced to carefully selected market segments during the year have certainly begun to bear fruit and this is a testament to the group’s drive towards innovation,” he said.
