Ongoing economic reforms in the first half of the year has amid a good performance which saw net premium recorded surging by 102%.
This led to the Listed financial services company Fidelity Life Assurance (FLA) praising the stability it has brought about by the economic reforms.
FLA board chairman Fungai Ruwende, said the Zimbabwe dollar has maintained relative stability on the auction platform.
“Month-on-month inflation averaged 3,2% in the six months to June 2021 resulting in the Consumer Price Index moving up 21%, the Foreign Currency Auction System turned one year in June 2021 and the Zimbabwe dollar marginally depreciated by 4.3% in the period under review,” Ruwende said.
Ruwende said, during the period, the group recorded net premium written in inflation adjusted terms of $ 441 million, an increase of 102% from $218,3 million recorded prior year attributable to responsible reviews of recurring premiums, new business acquisition and organic growth from the existing book.
“The Life Insurance businesses continue to be the major contributor to total core income growth contributing 83% of total core income. Total income including investment income in inflation adjusted terms declined by 67% to $933,8 million from $ 2,836 million due to insignificant fair value adjustments on investment property and equities,” added Ruwende.
Fair values of the investment property which is mainly driven by movements in the exchange rate benefitted from the stability experienced during the first half of 2021 as compared to the same period prior year.
During the period under review total benefits, claims and other expenses declined by 43%.
Furthermore, Mr Ruwende said the company’s Chief Finance Officer is now the CEO.
“To ensure business continuity as well as to afford the Group time to identify a suitable replacement, our current Chief Finance Officer Zvenyika Zvenyika has been appointed Acting CEO,” he added