Fidelity Life Assurance of Zimbabwe has praised the current government’s investment promotion drive which they said could usher in economic growth, though they remain worried about the political uncertainty surrounding the impending elections.
According to Group chairperson, Fungayi Ruwende, given the imminent elections, the realization of significant changes in the economic landscape in 2018 remains uncertain.
“Political reforms towards the end of the year seemed to bring some self-correction to these phenomena as the markets slowed down and price increases restrained. Investment promotion initiatives by the new government administration have kindled some hope of positive economic trends going forward
“The current government administration is on an investment promotion drive that could usher in economic growth. However, given the imminent elections, the realization of significant changes in the economic landscape in 2018 remains uncertain,” said Ruwende.
The group performance for the year ended 31 December 2017 had a combination of wins and losses, which culminated in a 7% increase in the Group’s total revenues, which increased to US$55.9 million, from US$52.4 million reported for 2016.
Ruwende indicated that gross insurance premiums came in 7% lower and sales of stands for the Southview Park project were 4% lower than the prior year.
“At US$ 14.2 million, gross insurance premiums came in 7% lower than the US$15.4 million in the prior year. Sales of stands for the Southview Park project were 4% lower at US$23.4 million, against US$24.2 million in the prior year.
“The two lines of revenue combined contributed to 67% of the Group’s revenue, compared to 75% in the prior year.
“These reductions in core income were however cushioned by significant increases in investment income during the year, the most significant being fair value gains of US$4.5 million recorded on listed equities, compared to US$0.6 million in 2016,” he said.
He added that Finance costs reduced by 16% following the partial redemption of the Southview Park bonds during the year.
“Claims reduced by 41% from US$8.3 million to US$4.9 million. Property development expenses increased to US$15.9 million against US$13.3 million in the prior year.
“Finance costs reduced by 16% to US$1.7 million following the partial redemption of the Southview Park bonds during the year.
“The Group closed with a loss for the year after tax of US$1.3 million against the restated profit for 2016 of US$6.4 million.
