New Products Drive Fidelity Life Revenue

Fidelity Life Assurance (FLA) insurance contract revenue grew by 243 percent in 2023 to $116,6 billion compared to $34,1 billion in the prior year, driven by uptake of new products.

Group chairman Mr Livingston Gwata, in a statement of financials for the year to December 31, 2023, said in historical cost insurance contract revenue grew by 962 percent compared to the prior year, from $4,6 billion to $48,5 billion.

"The impressive growth in insurance contract revenue was on the back of the group's innovative product development, which bore fruit and increased uptake of the company's product offerings on the market."

Mr Gwata said the significant growth in premium inflows was witnessed through the Vaka Yako product, which contributed 83 percent of the individual life premiums.

Vaka Yako is a scheme that allows one to purchase a stand from the pool of residential stands available anywhere in the country.

The product, launched in 2022, is designed to help individuals grow their funds in a structured savings model that guarantees their homeownership.

According to Mr Gwata, the Zimbabwe operation contributed 62 percent of the premium inflows, while 38 percent is attributable to the Malawi operation.

During the year under review, insurance service results increased by 280 percent on an inflation-adjusted basis and increased by 1 598 percent under historical cost, underpinned by real growth in insurance contract revenue.

"This is despite an increase in insurance service expenses propelled by the growth in claims and directly attributable costs due to the inflationary environment prevailing in Zimbabwe and the regional business operation."

The group's net investment income grew by 91 percent compared to the prior year, from $37 billion to $70,8 billion on an inflation-adjusted basis.

"The major drivers are fair value gains from investment property, equities, and interest income from money market investments," said Mr Gwata.

According to the financials, the group profit for the period increased by 99,45 percent on an inflation-adjusted basis from $1 billion to $101,1 billion.

Mr Gwata said the group continues to diligently uphold its commitment to provide market-driven products that meet customers' needs.

"As we continue to adapt to changing market dynamics and embrace emerging technologies, we have embarked on a group-wide digitalization and system upgrade aimed at enhancing convenience at all our customer touch points."

The company also continues to seek both private and public partnerships with market players that align with its brand ethos of exceptional service delivery and value.

"This is in line with our dedication to offering relevant, all-inclusive products that cut across the peak and bottom of the market spectrum."

Mr Gwata said one of the flagship investments for the group was the Eagle Real Estate Investment Trust (REIT), which has since been awarded Prescribed Asset status.

The REIT project has been ably supported, with one project already underway in Mazowe at 13 percent completion, while in Victoria Falls, land was successfully acquired.