Fidelity Life FY16 results

Home/Headlines/Fidelity Life FY16 results

Fidelity Life reported its results for the year ended 31 December 2017 showing a decline in profitability to $2.32 million against a profit of $5.15 million prior year comparative. Earnings per share was also down at 1.64 cents from 4.74 cents prior year comparative. The Group recorded net insurance premiums of $14.8 million against $16.6 million in the prior year. Management said the difficult operating environment impacted on the Group’s premium income generation and collection ability. Total revenue for the period was down to $36.5 million against $52.1 million. The significant decline was attributed to the decline in income from the South View Park project.

Fidelity Life Financial Highlights 2016 2015
Gross premiums 15,385,282 17,203,335
Net premiums 14,837,105 16,623,035
Total Revenue 36,554,892 52,111,378
Net benefits and claims -12,062,126 10,975,269
Total benefits claims and other expenses -32,952,375 -43,531,068
Profit before tax 3,602,517 8,580,310
Profit for the year 2,325,666 5,152,677

The Reserve Bank of Zimbabwe (RBZ) has said a number of agencies are collecting revenue, but not remitting it to Treasury, a development that has left the financially-troubled government hamstrung. RBZ deputy governor, Kupukile Mlambo said the apex bank was fretting over a lot of agencies which are collecting revenue, but keeping it for their own use, instead of forwarding it to Treasury. In 2014, suspended Zimbabwe Revenue Authority (Zimra) commissioner-general Gershem Pasi told Parliament that the Zimbabwe Republic Police and the Zimbabwe National Roads Authority (Zinara) were not remitting all the money they collect to Treasury. – NewsDay, 3 May 2017

Government will now fully consolidate the diamond mining sector after resolving all legal issues with Chinese companies which were mining in the Chiadzwa area and agreeing to a compensation figure with Russian company Development Trust of Zimbabwe-Econendra of Russia (DTZ-OZGEO). Mines and Mining Development Minister Walter Chidhakwa said that all legal issues around the consolidation of the diamond mining sector particularly with the Chinese companies. Government merged diamond mining companies previously operating in Chiadzwa and Marange into ZCDC as the State moved in to ensure accountability. This triggered some court actions as some miners resisted eviction arguing the move was unlawful. As a result, Zimbabwe’s diamond production declined by 62 percent to 924 388 carats (almost 185kg) last year due to court cases filed by evicted miners resisting Government’s decision to consolidate the sector.  – The Herald, 3 May 2017

The Daniel Shumba-led Parliamentary Portfolio Committee on Mines yesterday recommended that the Civil Service Commission recalls Mines secretary Francis Gudyanga for his alleged abuse of the country’s diamond revenue. In a report issued on the consolidation of diamond companies, Shumba also said Gudyanga should be charged with contempt of Parliament for refusing to avail polygraph test results of Zimbabwe Consolidated Diamond Company (ZCDC) managers when the committee requested them. “The grounds for dismissal include his role in aiding illicit financial outflows, poor corporate governance and at times his position has been conflicted,” the report said. The committee recommended that Gudyanga be fired within a month. – The Herald, 3 May 2017

By |May 3rd, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.