HARARE,– Fidelity Life Assurance on Tuesday announced a significant lift in profits by over 140 percent in the six months to June on the back of a rise in investment and premium income.

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Fidelity H1 profits jumps 140pct

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Group chairman Lawrence Tamayi said on Tuesday that Fidelity’s profit increased to $2,9 million for the half-year, up 141,6 percent from $1,2 million in the previous corresponding period.

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Total revenue for the period grew by 50 percent to $13,8 million from $9,2 million registered last year.

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“Net insurance premiums written as at June 30, 2015 amounted to $8,9 million an increase of 15 percent over the $7,7 million written in the corresponding period last year. Underwriting surplus of $3,3 million was realised,” Tamayi said in a statement to release the results.

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Fidelity’s flagship unit, Fidelity Life Assurance had net premium income of $7,3 million, up four percent on prior period resulting in an underwriting surplus of $2,2 million and a profit for the period of $1,8 million.

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Despite the insurance firm diversifying into the property sector, Tamayi noted that income from the property development project – Fidelity Life Southview Park – was yet to be incorporated in the group’s half year results pending completion and certification of development works.

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“We are confident of completing the project and obtaining the requisite certification in the second half of the year,” he said.

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The group’s Vanguard Life Assurance, recorded a net premium income of $1,58 million up 13 percent from the $1,4 million recorded in the comparative prior period as profit for the period amounted to $130,000.

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The micro finance subsidiary had an increase in profits to $500,000 from $200,000 while the actuarial consultancy business contributed $27,000 and the asset management company broke even.

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Fidelity did not declare a dividend for the period to conserve cash for various projects the group is undertaking. – VOA

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