adminexceptional growth in earnings per share was achieved on the back of a US$4 million growth in net premium income for the period, which totalled US$11,7 million in the period under review.
The life assurance group said premium income from employee benefits contributed US$6,1 million to the total premium of US$7,1 million.
As such, the life assurance business lifted the group to profit before tax of US$9,3 million, an increase of 200 percent.
The group, now valued at US$33 million, up from US$20 million, said investment income grew by 524 percent US$3,8 million. But other incomes contributed US$3,2 million to profits in 2011.
Owing to the strong financial performance the group decided to reward shareholders with a US$350 000 dividend.
Fidelity said apart from overall growth in premium income, lower growth in benefits, claims and expenses of 45 percent weighed in positively.
Managing director Mr Simon Chapereka said the company expected to double the bottom line in the next 12 months.
“We have made a good start to 2012. Provisional results indicate growth. We posted good results in line with the budget and in terms of what we expected,” he said.
Fidelity registered growth across operations with the funeral services unit recording 185 percent increase in profits to US$654 000. Premium income in the unit came in at US$1,7 million.
Its 67 percent-owned Malawi subsidiary, Vanguard Life Assurance, continued to grow, chipping in with US$1,65 million to pre-tax profits from US$933 000 despite domestic economic strife.
The Malawian unit will soon benefit from the 350 million kwacha it seeks to raise through equity placement to fund a solvency gap. This would dilute Fidelity’s shareholding to 51 percent.
Other subsidiaries combined contributed US$900 000 to pre-tax profits. The asset management business continued on recovery while financial services and actuarial business grew modestly. Demand for consumer loans remains high due to low incomes.
He said the group would achieve its target of doubling the bottom line given the economic recovery and projects on the ground. The group bought 317 housing stands with 200 of these earmarked for immediate sale while 117 would be held as a land bank.
Mr Chapereka said the company had bought 67 hectares of land for development of housing stands and of that only 34ha has been used. The remainder will be used during the second phase this year.
The group also said negotiations were at an advanced stage to buy another 30ha in Harare that would yield 6 000 residential stands.
Online Reporter