Good times beckon, says FLA
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.