Notice: Undefined variable: fm_appid in /var/www/wp-content/plugins/facebook-members/facebook-members.php on line 71
Conrad Mwanawashe Business Reporter
FIDELITY Life Assurance of Zimbabwe saw net insurance premiums fall to $14,8 million in the 12 months to December 31, 2016 against $16,6 million recorded the prior year, which the group blamed on the “difficult operating environment”.
The group said the difficult operating environment had a negative impact on premium income generation and collection ability.
Income from the sale of stands at the Southview Park project was lower than 2015 as the project is in its final stages. Total revenue generated by the group closed the year at $36,6 million.
Insurance claims at $7,2 million were higher than the prior comparative period at $6,7 million while property development expenses were significantly lower at $4,5 million compared to $20 million in the prior year. This, the group said, reflected the near completion of the Fidelity Life Southview Park project.
The acquisition of the Langford Estates land bank resulted in the group assuming debts of $14 million in a land for debt swap transaction that increased the finance costs incurred to $2 million in against $0,5 million in the comparative year.
Profit for the year amounted to $2,3 million. The group is banking on the acquisition of the Langford Estates land bank, to yield over 12 000 residential stands, for better fortunes going forward.
Turning to insurance subsidiaries, Fidelity Life Assurance, the anchor company recorded a decline of 8 percent in premium income to $12,4 million compared to $13,5 million in the prior year. Total revenues retreated 33 percent to $29,9 million as the remaining stands at Southview Park were sold out.
Malawi based unit, Vanguard Life Assurance, recorded premium income of $2,4 million down 24 percent from $3,1 million recorded in 2015 with profit amounting to $1,5 million.
Non-insurance subsidiaries saw the micro finance unit posting profits rising to $1 million from $0,38 million in the comparative year.
The actuarial consultancy business contributed $26 000 while the asset management posted a loss of $190 000 which the company attributed to fair value adjustments on its property portfolio