Fidelity Life’s success

Fidelity Life Assurance put up a commendable half-year performance to June 30, 2011 after it notched up a 431 percent increase in profits to US$4,9 million, spurred by strong demand of insurance products.

The group said underwriting surplus for the interim period also increased 208 percent to US$2,4 million on recovery of the insurance sector.

Net income premium for the group increased to US$5,6 million reflecting a 91 percent jump compared to the same period last year. Fidelity, which was voted the best listed insurance company in 2010, has been on a rampage on the Zimbabwe Stock Exchange, becoming the biggest year-to-date gainer with its share price going up by 491,3 percent.

The counter had opened the year at US2,2c and closed yesterday's trading at US$13,01c. Analysts have projected the price of Fidelity to trade around US20c, on the back of its solid performance.

During the period under review, all subsidiaries of Fidelity Life Assurance, Vanguard, Financial Services and Fidelity Life Asset Management contributed significantly to group performance.

Fidelity Life posted a profit of US$2,9 million on the back of solid performance of its mainline insurance and pensions business as well as investments. The group's regional operations in Malawi, Vanguard Life, made a profit of US$588 000 while Fidelity Funeral profits surged by 451 increase to US$390 000.

Going forward the unit is expected to continue contributing meaningfully to the group after establishing itself as a major player in the sector.

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