Chronicle Editor
Sikhulekelani Moyo, [email protected]
INSURANCE concern Fidelity Life Assurance (FLA) of Zimbabwe has said the group’s insurance contract revenue grew by 5 percent from US$10,3 million the prior year to US$10,8 million in the current period on the back of expanded distribution channels.
In a statement accompanying the group’s trade update for the nine months ending 30 September 2024, the company secretary Ms Ruvimbo Chidora said the use of both traditional and digital platforms has given FLA clients added convenience and ease of doing business resulting in business growth.
She said the profit for the period grew by 142 percent from US$3,9 million in the prior year to US$9,3 million in the current period mainly attributable to fair value gains obtained from investment property held.
“The life and pensions business remains the cornerstone of the group’s business as it continues with its strategic thrust to re-orient to the core business,” she said.
“During the period under review, the local life and pension business contributed 64 percent (2023: 61 percent) to the insurance contract revenue with the regional unit (Vanguard Life Assurance in Malawi) contributing 34 percent (2023: 39 percent).
“The market demand for the group’s innovative products and organic growth contributed positively to the growth in insurance contract revenue.”
Ms Chidora said annuities and individual life contributed 69 percent against 40 percent recorded last year to new business expansion fuelled by a customer-centric philosophy.
She said the Vaka Yako product has significantly contributed to the insurance contract revenue and continues to maintain a dominant position in the market.
“The group anticipates launching more innovative products to cater to the diverse needs of the market,” said Ms Chidora.
“The regional life and pensions business in Malawi notwithstanding the challenges in the operating environment, witnessed growth of 32 percent in group business anchored by organic growth of the existing book as well as the acquisition of new business.”
Meanwhile, on micro-lending business, FLA said interest income grew by 126 percent from the prior year.
Ms Chidora said the business is set on doing well after negotiating lines of credit including from non-traditional sources and the unit seeks to diversify disbursements to new segments which is key for portfolio growth.
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