USD business stimulates Fidelity growth
Fidelity Life Assurance (FLA) says insurance contract revenue rose 277 percent to US$8,2 million in the interim period to June 30, 2024 compared to US$2,2 million in the prior year same period driven by USD business growth.
Group chairman, Livingston Gwata, in a statement of the financials, revealed innovative product sales brought in new business and organic expansion as customers increasingly embraced the group’s offerings.
“Vaka Yako’s strengthening market position was a notable highlight, underpinning the group’s insurance revenue growth,” he said.
Gwata said the group’s insurance service result improved significantly from negative US$4,4 million to positive US$2,0 million, driven by impressive growth in insurance contract revenue, reduced claims experience and effective expense management.
“These resulted in lower insurance service expenses, a 7 percent decrease from the same period in prior year which enhanced the insurance service result position for the period under review,” he said.
During the period under review, the group achieved a 135 percent profit increase to US$5,2 million up from US$2,2 million recorded in prior year, driven by a trifecta of growth in insurance contract revenue, low insurance service expenses, and fair value gains from the property portfolio.
According to Gwata, the business managed to achieve the set targets despite the challenging environment as strong performance was recorded across all the business units with the Life and Pensions business being the flagship of the Group.
He said the actuarial and microlending units have continued to grow albeit at a slower pace while the Asset Management unit launched the Eagle Real Estate Investment Trust (REIT) which has been well received in a market as a desirable alternative investment instrument.
“The REIT is expected to be listed in the last quarter subject to regulatory approvals,” said Gwata.
Going forward, Gwata said despite forecasts of a broader economic slowdown, the group is confident that it will achieve strong revenue and profitability growth.
He said the key driver of this performance will be the Vaka Yako/Yakha Eyakho housing scheme, which has seen a surge in demand following the successful commissioning of Stoneridge Park residential stands in August 2024.-ebinessweekl
