Zimbabwe’s Fidelity Life Assurance reports 135% profit increase in first half
Zimbabwe-based Fidelity Life Assurance (FLA) has announced a 135% profit increase to US$5.2 million for the six months ending June 30, 2024, driven by growth in insurance contract revenue, low insurance service expenses, and fair value gains from its property portfolio.
by growth in insurance contract revenue, low insurance service expenses, and fair value gains from its property portfolio. · Nehanda RadioThe company’s insurance contract revenue rose 277% to US$8.2 million, with its Vaka Yako product being a notable highlight. The life and pensions business unit performed strongly, while actuarial and microlending units showed slower growth.
FLA has launched the Eagle Real Estate Investment Trust (REIT), expected to list in the last quarter of 2024, subject to regulatory approvals.
Chairman Livingstone Gwata said the company focused on customer excellence, innovative solutions, and sustainability, aligning with the United Nations’ Sustainable Development Goals.
Despite Zimbabwe’s projected economic slowdown to 2% in 2024, FLA expects strong revenue and profitability growth, driven by its Vaka Yako/Yakha Eyakho housing scheme.
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“The Financial and Insurance Services sector is, however, projected to register 5.6% growth in the current year.
Government and monetary authorities are expected to continue with policies and measures aimed at promoting use of the local currency and exchange rate stability.
“While the use of the local currency in domestic transactions is expected to grow, we expect the business revenue in the second half to remain predominantly in foreign currency.
“Despite forecasts of a broader economic slowdown, the Group is confident that it will achieve strong revenue and profitability growth.
“The key driver of this performance will be the Vaka Yako/Yakha Eyakho housing scheme, which has seen a surge in demand following the successful commissioning of Stoneridge Park residential stands in August 2024,” Gwata stated.
The chairman also expressed appreciation for the company’s performance, thanking directors, management, staff, policyholders, and stakeholders for their support.
The company has changed its functional and reporting currency to US dollars, effective January 1, 2024, in line with International Accounting Standards (IAS) 21.