ZIMBABWE Stock Exchange-listed Fidelity Life Assurance says it expects better fortunes this year driven by a better agricultural season and progress made by local manufacturers on the back of Statutory Instrument 64.
By Fidelity Mhlanga
The company’s chairman, Fungai Ruwende told an annual general meeting last Friday that, while 2016 posed a difficult environment bedevilled by serious liquidity challenges and low product uptake, this year was more promising.
“While 2016 remained difficult due to serious liquidity challenges, low take up of insurance products and high trade deficit, it is, however, encouraging that 2017 promises to have better fortunes driven by a better agricultural season and progress by local manufacturers after promulgation of SI 64.
“GDP (gross domestic product) growth for 2017 is expected to be 3,7% and the increased economic activity by various players in the economy, bodes well for our various business lines,” he said.
Ruwende said the company continues to register progress in following regulatory requirements following a forensic audit last year, adding management was engaging all stakeholders to ensure that the firm operates as a robust financial services entity.
He said they will focus more on Langford Estates, where they had begun the necessary processes for the development.
“The company remains profitable in 2017. The group will continue to ensure that the insurance operations remain profitable, whilst diversifying income and strengthening the balance sheet through property projects,” Ruwende said.
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“The company has significant debt, however, plans are being implemented to streamline it to appropriate levels.”
Acting managing director, Nyaradzo Matindike said recovery in the second half of this year will be supported by new products and schemes to be introduced next month.
The company’s total cumulative income for the five months to May 2017 was 32% below budget at $8,4 million.
Matindike said Fidelity Funeral is improving considerably, as income to date is 36% higher than last year’s $158 000.
