Fidelity Life Assurance has announced a significant lift in profits by over 140 percent in the six months to June on the back of a rise in investment and premium income.
Group chairman Lawrence Tamayi said that Fidelity’s profit increased to $2.9 million for the half-year, up 141.6 percent from $1.2 million in the previous corresponding period.
Total revenue for the period grew by 50 percent to $13.8 million from $9.2 million registered last year.
“Net insurance premiums written as at June 30, 2015 amounted to $8.9 million an increase of 15 percent over the $7.7 million written in the corresponding period last year. Underwriting surplus of $3.3 million was realised,” Tamayi said in a statement to release the results.
Fidelity’s flagship unit, Fidelity Life Assurance had net premium income of $7.3 million, up four percent on prior period resulting in an underwriting surplus of $2.2 million and a profit for the period of $1.8 million.
Despite the insurance firm diversifying into the property sector, Tamayi noted that income from the property development project – Fidelity Life Southview Park – was yet to be incorporated in the group’s half year results pending completion and certification of development works.
“We are confident of completing the project and obtaining the requisite certification in the second half of the year,” he said.
The group’s Vanguard Life Assurance, recorded a net premium income of $1.58 million up 13 percent from the $1.4 million recorded in the comparative prior period as profit for the period amounted to $130 000.
The micro finance subsidiary had an increase in profits to $500 000 from $200 000 while the actuarial consultancy business contributed $27 000 and the asset management company broke even.
Fidelity did not declare a dividend for the period to conserve cash for various projects the group is undertaking.- The Source