insurance company Fidelity Life has announced total comprehensive income of $34.5 million, a 37% lift on the previous year.
After adjustment for the gain on the sale of the Fidelity Super-Super Plan, Number 3, the underlying profit before shareholder tax of $33.4 million represents an 11% improvement on the last year and a record year for the company.
Premium income increased by 11% to $222.7 million. The group risk book increased by 40% while retail risk increased 15% due to both new business and retention efforts. The company is now ranked third for total market share with 10.7% of in-force premium, up slightly on the previous year.
Chairman Ian Braddock said the company’s increased profit was driven by growth across the business and a continued focus on core risk products.
“During the year we divested the Fidelity Super-Super Plan, Number 3. This sale continues our transition towards focusing on life and related insurance business, and away from savings
“As well as striving for growth in new business we maintained our focus on keeping as many policies as possible on our books, and once again, the rate of cancellations fell. Improved retention remains a focus in the year ahead.”
During the year the company embarked on a three year project which will deliver major change to the company’s policy administration system.
“The upgrade is the single biggest investment made in the history of Fidelity Life and will bring a positive impact across the business. It will enable greater innovation in our product
offering and most importantly, it future proofs the company for many more years to come.”
Mr Braddock said a number of developments during the year had confirmed the company’s solid reputation in the market. This included A.M. Best re-affirming Fidelity Life’s A- (Excellent)
financial strength rating for the twentieth year, signalling continued confidence for customers.
A number of senior appointments also placed the company in a strong position going forward, he added.
“In July of this year we were thrilled to announce the appointment of Nadine Tereora to the role of CEO. Nadine’s appointment, combined with the recent board appointments of internationally experienced CEO and marketing director Alan Gourdie, and financial industry specialist Simon Botherway, further strengthens the leadership of the organisation as we move into this next phase of growth.
“These are exciting times for Fidelity Life and we are now well placed to embrace future growth opportunities with optimism and confidence.”