FIDELITY Life Assurance Zimbabwe’s profit after tax more than doubled to US$6,1 million in the year ended May 30, 2025, driven by higher insurance contract revenue and gains from unquoted equity investments, the financial services concern has said.
In the prior period, Fidelity recorded a profit after tax of US$2,4 million.
Giving a trading update during the company’s recent annual general meeting, managing director Reginald Chihota said the firm would continue developing customised products to meet shifting market needs that prioritised financial security and long-term planning.
“The company reported a profit after tax of US$6,1 million (ZiG164,2 million). This represented an increase of 154% when compared to the US$2,4 million (ZiG64,6 million) that was earned in the prior period,” he said.
“This positive performance was driven by a steady increase in insurance contract revenues and net investment income from unquoted equity investments earned in the current year. The life and pensions division, which is the flagship of the group, remained resilient, posting a 3% increase in insurance contract revenue.”
Chihota said this revenue amounted to US$6 million (ZiG161,5 million) up from US$5,8 million (ZiG156,1 million) recorded in the same period the previous year.
The individual life division, he added, remained a significant contributor, accounting for 79% of the total revenue to date.
“This result is on the back of the continued strong performance of the Vaka Yako product. Other new innovative products are in the offing, and these should be rolled out soon to join the bouquet of tailor-made products on offer,” Chihota said.
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He added that Vanguard Life Assurance, Fidelity’s Malawian subsidiary, contributed 27% of the total revenue.
The subsidiary is on an aggressive expansion and growth trajectory characterised by the spawning of new strategic business units, entry into new market segments, and the launching of new products.
Fidelity said the anticipated turnaround of the funeral services business remained firmly on track as the firm recently acquired a fleet of hearses and buses.
Branch expansion progressed on schedule as strategic partnerships, local, regional and international, were finalised.
Chihota said the firm rolled out innovative products and services like the ‘Bury Now, Pay Later’, and that the commissioning of the Executive Centre was imminent.
During the period, non-insurance businesses accounted for 6% of the group’s total income.
“Although this represents a modest portion, these units play a crucial supporting role in the group’s ecosystem as their complementary product offering gives life to our ‘Cradle to the Grave’ customer promise,” Chihota said.
“As we look towards the future, Fidelity Life remains committed to skilfully and profitably navigating the evolving landscape of the financial services sector.”
