Insurance concern, Fidelity Life Assurance Limited recorded a 5% growth in insurance contract revenue from US$10.3 million prior year to US$10.8 million for the third quarter ended 30 September 2024.
The growth is attributed to expanded distribution channels. The company has adopted traditional and digital platforms making client interaction and access to products easier and friendly.
The profit of the company at US$9.3 million was 142% above prior year comparative period figure of US$3.9 million. The profit is mainly attributable to fair value gains obtained from investment property held.
The Life and Pensions business contributed 64% to the insurance contract revenue compared to 61% last year.
The company’s regional unit, Vanguard Life Assurance in Malawi contributed 34% compared to 39% in 2023.
The company has rolled out innovative products and maintained its organic growth which has seen its insurance contract revenue increase.
There has been marked growth in the new business segment with Annuities and Individual Life contributing 69% (2023: 40%) to new business expansion. The company has undertaken a customer centric approach fuelled by their customer centric philosophy. The housing provision arm Vaka Yako product has significantly contributed to the insurance contract revenue and continues to maintain a dominant position in the market.
More innovative products are in the pipeline as the company strive to cater for the diverse needs of the market.
Across the border, the regional Life and Pensions business in Malawi witnessed growth of 32% in group business anchored by organic growth of the existing book as well as acquisition of new business.
The micro lending business’ interest income grew by 126% from prior year and the business is set on doing well after negotiating lines of credit including from non-traditional sources and the unit seeks to diversify disbursements to new segments which is key for portfolio growth.
The company continues to hedge its long-term liabilities with real assets that can do the double duty of preserving and creating value for policyholders and shareholders.
The company has activated strategies to build long term wealth and security through innovative customer focused and relevant products and venture into new market segments both locally and regionally and churning out new innovative products tailor made for Zimbabweans in the diaspora with a view to grow our USD revenue streams.
