Fidelity Life Assurance of Zimbabwe Ltd. Reports 70% of its Business Unit Revenue was in Foreign Currency, Reflecting the Operating Environment.

Published On: December 15, 2023Company: Fidelity Life Assurance of Zimbabwe Limited (
What are the key drivers behind the growth in Fidelity Life Assurance's insurance contract revenue?
The significant growth in insurance contract revenue was driven by an increase in new policies written, organic growth of the existing book, and the increasing USD business written.

Economic Overview

  • The Zimbabwean economy witnessed relative stability in Q3 2023 due to government measures to halt the depreciation of the local currency.
  • The Zimbabwe dollar improved by 5% while the inflation rate decelerated, particularly in July and August, despite the widespread use of foreign currency in domestic transactions.
  • 70% of revenue for the business units was in foreign currency, a reflection of the operating environment.
  • The Zimbabwe National Statistics Agency (ZimStat) introduced a new methodology for calculating inflation, resulting in a year-on-year inflation rate of 18.4% at the end of Q3 2023.
  • In comparison to the prior year, the Total Consumption Poverty Line (TCPL) was up 250% in September 2023.

Financial Performance

  • The Group’s insurance contract revenue increased by 212% in inflation-adjusted terms, from ZWL2.5 billion to ZWL7.8 billion in the current period.
  • This increase in revenue was due to an increase in new policies, organic growth, and a rise in USD business.
  • Profit for the period grew by 276% in inflation-adjusted terms from ZWL14.7 billion to ZWL55.3 billion in the current period. In historical cost terms, profit grew by 529% from ZWL4.1 billion to ZWL26.2 billion.

Business Operations Review

  • The life and pensions business experienced significant growth, with innovation being a core part of its strategic execution.
  • The micro-lending business also showcased strong growth, with an influx of new segments.
  • Non-insurance businesses, such as Actuarial Consulting Services and Wealth Management, saw positive growth trajectories with new business and services being offered during the quarter.
  • The extension of the multiple currency regime to 2030 has stabilized the economy and Fidelity Life plans to introduce more customer-centric products to cater to the diverse needs of the Zimbabwean population while aiming to capitalize on growth opportunities.

Useful links

About Fidelity Life Assurance of Zimbabwe Limited (

Fidelity Life Assurance of Zimbabwe Limited is a holding company providing products and services for life assurance, employee benefits, asset management, medical insurance, funeral assurance provision of actuarial services and residential property development. This includes managing pensions, funeral insurance and microfinancing in the informal banking market. Fidelity Life Assurance Zimbabwe offers additional products for individual loans, salary-based loads and loans for farmers. Its actuarial services include life and general insurance services, healthcare insurance, investments and finance and funeral assurance schemes. Its asset management services include unit trusts, money market funds, equity funds, balanced funds and advisory services. Its medical aid services include an access health package, express health package and a foundation health package. The company operates in Zimbabwe and Malawi, with the latter offering products for life assurance and pensions. Fidelity Life Assurance of Zimbabwe Limited is listed on the Zimbabwe Stock Exchange

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