Published: 12 August 2025

Fidelity Life Assurance Zimbabwe has reported a sharp rise in profit after tax to US$6,1 million for the year ended May 30, 2025, more than doubling the US$2,4 million recorded in the prior period. The company attributed the 154% surge to stronger insurance contract revenues and gains from unquoted equity investments.

Presenting a trading update at the firm's annual general meeting, managing director Reginald Chihota said Fidelity would continue developing customised products to address changing market needs, with a focus on financial security and long-term planning.

"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.

Revenue for the division rose to US$6 million, up from US$5,8 million last year. The individual life division continued to be the largest contributor, accounting for 79% of total revenue, supported by the strong performance of the Vaka Yako product. Chihota revealed that additional innovative offerings were set to be launched soon, further expanding the company's product range.

Vanguard Life Assurance, Fidelity's Malawian subsidiary, contributed 27% of total revenue during the period. The subsidiary is pursuing an aggressive expansion strategy, launching new strategic business units, entering fresh market segments, and introducing new products.

In Zimbabwe, Fidelity is pushing ahead with the turnaround of its funeral services business, having recently acquired a fleet of hearses and buses. The company has also advanced its branch expansion plans and strengthened strategic partnerships locally, regionally, and internationally.

New initiatives include the "Bury Now, Pay Later" product, while the commissioning of the firm's Executive Centre is expected soon. Non-insurance businesses contributed 6% to total group income, playing what Chihota described as a crucial supporting role in delivering the company's "Cradle to the Grave" customer promise.

"As we look towards the future, Fidelity Life remains committed to skilfully and profitably navigating the evolving landscape of the financial services sector," Chihota said.
- newsday

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