adminIn a statement accompanying the company’s audited financial results to December 2011, chairman Mr Solomon Tembo said the group’s performance improved with demand for individual insurance increasing although low disposable incomes continued to have a negative impact on the rate of growth of business.
Fidelity Life Assurance, the flagship operation, contributed the bulk of the profits with $6,11 million.
Mr Tembo said income from premiums rose 53 percent to $11,76 million compared to last year’s $7,7 million.
The company paid out $8,4 million in benefits, claims and expenses, an increase of 45 percent from the $5,8 million paid in 2011.
He said premium income from employee benefits contributed to $6,1 million to Fidelity Life Assurance while individual life premiums accounted for $1 million.
“The recovery of the economy in 2011 and the resultant improvement in disposable incomes translated to improved business for the company,” he said.
Mr Tembo said the improving economic environment also benefited its funeral services division.
“The unit registered a 182 percent growth in profit before tax to $654 655 in 2011, from $232 000 in 2010,” he said.
Performance at the Malawian subsidiary, Vanguard Life, was spurred by changes in pensions legislation in that country which now makes it mandatory to contribute towards retirement benefits. Vanguard made a profit of $1,65 million, up from last year’s $933 000.
Mr Tembo said he expected the group to continue performing well as the economy continues to recover.
“It is our belief that as economic activity improves in various sectors of the economy, demand for the group’s products and services will also improve,” he said.
Online Reporter