Good times beckon, says FLA

The Sunday Mail (Zimbabwe) - - BUSINESS NEWS - Golden Sibanda Se­nior Busi­ness Re­porter

ZIMBABWE Stock Ex­change­listed Fidelity Life As­sur­ance says the group is firmly set on sus­tain­able growth path in light of stel­lar per­for­mance in the first half of 2018.

In an in­ter­view, chief ex­ec­u­tive Mr Reuben Java said the pos­i­tive per­for­mance demon­strated the group was headed in the right di­rec­tion.

H1 fi­nan­cial per­for­mance showed an in­crease in rev­enue largely at­trib­uted to sale of res­i­den­tial stands ($12 mil­lion out of $25,8 mil­lion). There has been growth in the in­sur­ance busi­ness as well.

Gross writ­ten pre­mi­ums in­creased 43 per­cent com­pared to the prior pe­riod, driven by ag­gres­sive new busi­ness ac­qui­si­tion, par­tic­u­larly in the em­ployee ben­e­fits seg­ment.

“Over­all, the group’s per­for­mance was very pleas­ing, with a 97 per­cent in­crease in rev­enue recog­nised in the half year to June 30, 2018 com­pared to the half year to June 30, 2017.

“The group closed its half-year ahead of the same pe­riod in 2017, with a profit be­fore tax of US$3,7 mil­lion com­pared to US$2,4 mil­lion for the pe­riod to June 30, 2017. The per­for­mance shows the early fruits of the Group’s ef­forts to re­build its po­si­tion in the mar­ket,” Mr Java said.

Mr Java said the mi­cro-fi­nance sub­sidiary con­tin­ued to ex­cel, with its loan book grow­ing or­gan­i­cally and from new lines of credit.

The unit posted a profit be­fore tax of US$1,3 mil­lion, 52 per­cent higher than in the com­par­a­tive half year, on the back of rev­enue growth and cost man­age­ment.

“The strat­egy that we laid out at the start of 2018 is start­ing to bear fruit. We are fo­cus­ing on three main strate­gic pil­lars; th­ese are ag­gres­sive growth, brand repo­si­tion­ing and sound cor­po­rate gover­nance,” said Mr Java.

He said Van­guard Life As­sur­ance, Fidelity Life’s sub­sidiary in Malawi, had grow­ing im­por­tance as it pro­vided di­ver­si­fi­ca­tion.

The board and new man­age­ment at Fidelity Life have been strength­en­ing the group’s cor­po­rate gover­nance struc­tures.

“The na­ture of our busi­ness is that we sell prom­ises which are not tan­gi­ble; the value of th­ese prom­ises is grounded in the in­sti­tu­tional frame­work that we build to­day to en­sure that the prom­ises we make, as much as is hu­manely pos­si­ble will be de­liv­ered in fu­ture,” Mr Java said.

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