Fidelity to complete  Southview project  this year Finance and Economic Development Minister Patrick Chinamasa breaks the ground at Fidelity Life's Southview Park residential project yesterday. On his left is Local Government Minister Dr Ignatius Chombo, Fidelity chief executive Mr Simon Chapereka (centre) and Defence Minister Sydney Sekeramayi.
Finance and Economic Development Minister Patrick Chinamasa breaks the ground at Fidelity Life's Southview Park residential project yesterday. On his left is Local Government Minister Dr Ignatius Chombo, Fidelity chief executive Mr Simon Chapereka (centre) and Defence Minister Sydney Sekeramayi.

Finance and Economic Development Minister Patrick Chinamasa breaks the ground at Fidelity Life’s Southview Park residential project. On his left is Local Government Minister Dr Ignatius Chombo, Fidelity chief executive Mr Simon Chapereka (centre) and Defence Minister Sydney Sekeramayi.

Walter Muchinguri  Assistant Business Editor
Fidelity Life Assurance of Zimbabwe has brought forward the completion date for the servicing of stands under its Southview Park project to December this year instead of next    year.The insurer’s chairman Mr Lawrence Tamayi said in a statement accompanying the company’s results for the year ended December 2014, that this follows the highly successful bond that was floated by the company, which had an over-subscription of 1,5 times and raised $12,7 million for the project.

The bond has a three-year tenure at a rate of 10 percent per annum and can be traded since it has prescribed asset status.

“The completion date for the servicing of the residential stands had been brought forward to December 2015 from 2016 due to more funds having been raised through the Fidelity Life Park Bond than had earlier been anticipated,” he said.

Mr Tamayi said that the project was now 40 percent complete while a total of 4 000 stands had already been taken up. The group is expecting to offer 5 304 stands on the market.

The project raked in $18,2 million in property sales resulting in total revenue of $31,4 million for the year under review from $15,1 million in the prior year representing a 108 percent increase.

Apart from residential properties the new suburb that is taking shape on 323 hectares of land South of Harare will also have 14 flats, two commercial stands, five churches, a police station, six primary schools, two secondary schools, and six crèches.

Fidelity doubled its profits for the year to $5,04 million from $2,5 million on the back of increased revenue due to strong performance from its insurance and property operations.

Revenue for the group was up 56 percent to $38,3 million during the period under review as insurance premiums rose 12 percent to $16,1 while property sales grossed $18,2 million.

Total earning for the year amounted to $14,8 million while earning attributable to shareholders came in at $1,4 million representing a 181 percent increase from the prior year.

Net premium income for Fidelity Life Assurance jumped 25 percent to $13 million from $10,4 million in the prior year.

The group’s Malawi-based subsidiary, Vanguard Life Assurance recorded premium income of $3,1 million up 10 percent from the 2013 amount of $2,8  million.

The financial services company recorded a $0,27 million profit compared to $0,18 million in the prior year while the medical services company made a contribution of $43 000 and the actuarial services made a profit of $17 000. The asset management company however recorded a loss of $36 000.

 

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