Chronicle Editor
Senior Business Reporter
FIDELITY Life Assurance of Zimbabwe is optimistic that recent shocks in the economy arising from new policy measures in the financial services sector will stabilise the economic environment in the second quarter.
The country has undertaken widespread economic reforms that broadly seek to contain fiscal and current account deficits while growing the economy towards an upper middle-income status by 2030.
The Government has also come up with additional measures to strengthen demand for local currency, including allowing exporters to pay taxes using local currency, although this is under review.
In its first quarter trade update, the firm described the recent policy pronouncements as “necessary corrections”.
“Therefore, in terms of our businesses we remain optimistic they will continue to register continued business growth as they respond to unfolding market trends to offer the appropriate products, services and solutions to our clients.”
On its Life and Pensions Business unit, the firm said due to a diligent choice of markets and products being rolled out, significant business growth is being registered.
“Compared to the first quarter of 2021, all business lines grew by close to 100 percent,” the group said.
It said its non-insurance businesses got off to a strong start in 2022 on the back of aggressive business growth initiatives and cross selling activities within the group.
The group’s total core revenue for the first three months increased by 33 percent and 101 percent from the same period in the previous year in inflation-adjusted and historical terms respectively.
Core revenue was driven by the life assurance businesses contributing 80 percent to the total group’s core revenue.
To hedge its investments from global supply interruptions emerging from the Russia-Ukraine conflict and imported inflation, the firm said it will be astute with investments to preserve value for policyholders and stakeholders.
These two nations are major suppliers of crude oil, sunflower and wheat. Zimbabwe is a net importer of all three commodities and any price increases on the global market will result in imported inflation.
Online Reporter