Fidelity Life Assurance records 45% revenue growth

By Leafias Mazviro

Fidelity Life Assurance of Zimbabwe has registered a 45% increase in its total income in inflation-adjusted terms to ZWL16 514, 9 million from ZWL11 359, 2 million recorded in the previous year.

According to the company’s latest annual report, the strong income growth was underpinned by core business net premium written and investment income which increased by 230% and 475% respectively.

“The Group’s strategic choice to focus on core business resulted in positive results, with the Group posting comprehensive income for the year of ZWL 2 616.9 million on an inflation-adjusted basis and ZWL 5 376.4 million on a historical cost basis for the year ended 31 December 2022,” read the FLAoZ Annual report.

The firm’s growth in net premium increased from ZWL982.1 million which was recorded last year to ZWL3 245.1 million and it was above the inflation rate which stood at 243.76% in December 2022. 

“The growth is premised on regular reviews of recurring premiums, product modifications, and new market segments and leaning towards generating USD 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 the inflation-adjusted basis, total benefits, claims, and other expenses were increased to ZWL15.678.6 million from ZWL10 060.9 million and under the historical cost terms, an increase of 571% was recorded from ZWL4 318.0 million to ZWL28 990.0 million on the back of significant movements in actuarial liabilities reflecting the growth in assets backing the policyholders’ liabilities.

The net claims ratio closed the year at 41%, whilst operating and administration expenses were on the increase driven by the obtaining inflationary pressures.

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