Fidelity Life Assurance recorded a revenue increment of 18 percent for the half year ended 30 June 2017 to US$13.1 million compared to US$11.1 million in the comparable period in 2016 due interest income from sale of residential stands as well as fair value gains in the Group’s equity portfolio.
Group chairperson, Fungayi Ruwende reported that net premiums during the half year decreased by 28% compared to the same period in 2016 due to non remittance of premiums by policyholders coupled with discontinuation of some product lines by the company.
“Net premiums during the half year amounted to US$6.1 million, a decrease of 28% when compared to the same period in 2016.
“This is explained by non remittance of premiums by some policyholders as well as discontinuance of some product lines on account of unfavorable actuarial projections.
“The increase in profitability was on the back of improved investment performance and cost cutting initiatives.
“The Group continued to record high claims due to the harsh operating environment as well as high value claims incurred during the period. Profit from operations grew by 100% from US$1 million to US$2 million,” said Ruwende.
He added that the group flagship company recorded total revenue of US$9.5 million up from US$8,3 million received in 2016.
“The group flagship company (Fidelity Life Assurance company) recorded total revenue of US$9.5 million up from US$8,3 million in 2016.
“The anchor company contributed 73% to the Group’s total revenue. Net premium income of US$4.48 million was recorded compared to US$7,6 million recorded in the corresponding period.
“The decrease is due to discontinuance of some products. Profit for the period amounted to $1.3 million compared to US$0,5 million in the prior year.
“The company’s profitability was buoyed by investment income and cost containment, the company did not recognize any income from outright stands sales as no stands received compliance certificates in the period under review,” said Ruwende.
According to Ruwende, Fidelity Life Assurance is working to complete site works at Southview Park while continuing to evaluate its Langford Estates project.
The company reported that its focus for the remainder of the year will encompass continuation of debt reduction initiatives, “so as to allow the company to carry optimum levels of debt on the balance sheet.”