By Nyashadzashe Ndoro - Chief Reporter
Fidelity Life Assurance of Zimbabwe Limited (FLA) has reported a 14% rise in profit for the half year ended 30 June 2025, buoyed by higher insurance service results and strong investment income, particularly from its Malawi operations.
The group posted a profit of US$6.0 million, up from US$5.2 million in the same period last year. Insurance contract revenue increased by 5% to US$8.6 million, driven largely by growth in the individual life segment. The insurance service result rose 45% to US$2.9 million, reflecting reduced claims and tighter cost controls.
Total assets stood at US$105 million, compared to US$91 million at year-end 2024, while investment property values increased to US$53.1 million from US$47.1 million, partly due to fair value gains. The group’s total equity improved to US$6.6 million, reversing a negative equity position of US$8.0 million recorded in December 2024.
Related Stories
Despite the profit, the board opted against declaring an interim dividend, citing the need to reinvest in operational efficiency and strategic growth. However, it noted that resources are being directed to support a “stronger year-end dividend” aligned with the company’s 40% payout policy.
The results come against a backdrop of modest economic recovery in Zimbabwe. Weighted annual inflation rose to 27.1% in June 2025, while the Zimbabwe Gold (ZWG) currency depreciated by about 3% against the US dollar. Agriculture and mining sectors provided support, but foreign direct investment and donor funding remained subdued, straining fiscal space.
In Malawi, where FLA also operates, inflation remained elevated at 30.7%, driven by food and fuel costs. The country’s current account deficit widened to 22% of GDP, while political and fiscal uncertainty increased ahead of elections later this month. Nevertheless, FLA’s Malawi operations contributed significantly to investment income growth.
The company continued its push for digitalisation, customer service improvements, and expansion into underserved markets. Initiatives included digital self-service platforms, low-cost service booths in informal sector hotspots, and new funeral parlours in satellite towns. The insurer also targeted the diaspora market through digital platforms and agency arrangements.
On sustainability, FLA said it was scaling up micro-insurance and medical aid products to reach underserved communities, while promoting financial literacy and climate-resilient initiatives.
Chairman Livingstone Gwata said the company will continue focusing on market expansion, innovation, and digitalisation, despite risks posed by inflation, currency instability, and imitation of products. The group also plans to broaden its investment-linked offerings and strengthen its presence in the diaspora market.
Leave Comments