Fidelity revenue up 36 percent


Fidelity Life Assurance of Zimbabwe Managing Director Simon Chapereka

INSURANCE group, Fidelity Life Assurance of Zimbabwe said on Monday revenues for the full year ended December 31, 2015 rose by 36 percent to US$52,1 million from US$38,2 million during the prior comparative period in 2014.

The group said revenues were driven by “positive” performances in the insurance premiums, sale of residential stands and interest income.

Fidelity has been developing its South View Park residential stands outside Harare, which, managing director, Simon Chapereka said were 84 percent complete.

These have been helping the group increase revenues, as people brave the economic crisis in Zimbabwe to pay for their stands in order to own their own houses.

“Despite the worsening economic environment, the performance of the group in 2015 was satisfactory with revenue for the year amounting to US$52,1 million, an increase of 16 percent over the prior period,” Fidelity said in a statement issued after a briefing of analysts.

“Total expenses increased by 38 percent from US$26,9 million to US$37,1 million mainly due to absorption of offshore infrastructure development costs. The company achieved an underwriting surplus of US$5,5 million compared to US$5,3 million in 2014,” the statement said, warning that the economy would remain difficult during 2016.

He  said pre tax profits increased to US$8,5 million during the period, from US$5,8 million at the same time during the prior comparative period.

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