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Mr Chapereka

Conrad Mwanawashe and Godfrey Gavure
FIDELITY Life Assurance recorded total income growth of 38 percent in the four month period to April compared to the same period last year driven by the life assurance business which grew 20 percent.

In an update to shareholders at the annual general meeting, Fidelity Life Assurance managing director Mr Simon Chapereka said growth during the period was helped by product innovation especially products linked to the funeral assurance business.

“Premium income grew by 27 percent while fee income we are at 40 percent. Our total income is at 38 percent compared to the same period last year. If our income has grown 38 percent and our expenses have grown by 6 percent then that differential has given us 50 percent in terms of underwriting surplus. In investment income we are in the positive as opposed to the negative last year,” said Mr Chapereka.

Mr Chapereka said the funeral business was the star performer.

“Funeral assurance is the star performer because of the new products linked to that market.

“The business has contributed about 20 percent to income,” said Mr Chapereka.

The income recorded does not include revenue from the group’s residential houses business in line with reporting requirements.

“We have not taken into consideration income from Southview Park on the basis that in terms of the International Accounting Reporting Standards substantial risk ought to have passed to the buyer therefore we have not taken that into consideration. But we expect that by year-end given the stage of completion which we anticipate we will bring into bank part of the income from the Southview project,” said Mr Chapereka.

To date the group has sold about 4 100 stands while the project is at 51 percent completion.

Slight delays were recorded due to incessant rains but the project is expected to be completed by year end. The group is looking for the additional banks to continue efforts to play its part in delivering quality residential stands to the market.

The focus of the group is to complete the servicing of the Fidelity Life Southview Park residential stands in the last quarter of 2015.