Fidelity Life profit up 1157%

Fidelity Life had a good start as a listed company. Though gross premium from the individual life division grew by only 125 percent, and group pensions by 326 percent, both below inflation, attributable profit went up by a staggering 1 157 percent.

According to its results for the year ending December, premium income increased from $1.4 billion to $5.1 billion while other income rose from $8.9 million to $586 million.

The surplus from underwriting increased from $269.7 million to $1.6 billion.

The bulk of the income was, however, from investment income which shot up from $2.3 billion to $25.4 billion.

The surplus before taxation increased more than tenfold from $2.6 billion to $27 billion while the surplus after taxation stood at $26.9 billion, up from $2.5 billion.

The company opened new branches in Kadoma, Chiredzi and Harare. It expects to open more this year.

It had intended to open a branch in the United Kingdom but this has been put on hold while the company complies with requirements of the new monetary policy.

It has secured a contract to manage Kenya National Assurance Company and is seeking to grow revenue in its wholly owned Vanguard Life Assurance Company in Malawi.

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