malvernmugadzikwa
Business Writer
Listed assurer, Fidelity Life Assurance, saw its six months to June 30, 2022 Net Premium Written grow by 3 percent as the company remained resilient to inflation.
The group recorded net premium written of $1,242 million in inflation adjusted, an increase of 3 percent from an inflation adjusted $1,285.8 million recorded prior year.
Fidelity Life Assurance, board chairman Livingstone Gwata, in a statement accompanying results noted; “The growth is mainly emanating from regular reviews of recurring premiums, new business acquisition and organic growth from the existing book.
According to Fidelity, the Life Insurance businesses are currently the major contributors to total core income growth contributing 80 percent of the total core income. As a result, total income grew by 379 percent in inflation adjusted terms to $13,029.5 million from $2,722.7 million recorded in prior period.
“The growth was underpinned by positive investment returns driven by fair value gains on investment properties and exchange gains on foreign currency denominated assets,” Gwata added.
On an inflation adjusted basis, total benefits, claims and other expenses increased by 300 percent from $2,683.1 million in 2021 to $10,659.3 million in 2022 on the back of significant movements in actuarial liabilities reflecting the growth in assets backing the policyholder’s liabilities.
Operating and administration expenses were also on the increase mainly driven by inflationary pressures currently obtaining in the operating environment.
The group recorded an inflation adjusted profit for the period of $2,325.7 million from $0,93 million recorded in prior period representing a positive growth in the business.
In view of the need to preserve internal resources to strengthen the capital position of the group through the deployment of earnings to increase business underwriting capacity, Fidelity did not to declare an interim dividend for the period under review.
Bongani Ndlovu