Fidelity Life has reported a solid result for the 2019 financial year as it steps up its customer-focused transformation.
The insurer reported a growth in total comprehensive income (profit after tax) from $16.7 million in 2018 to $20.7 million in 2019.
It stated key drivers were:
- An $8.2 million (before tax) uplift in net premium revenue to $150.3 million
- A strong focus on operating expenses
- Favourable movements in interest rates
Fidelity also noted underlying profit (excluding the impact of changes in interest rates) of $13.6 million was down on last year’s $19.2 million due in part to a 17 percent increase in gross claims.
Fidelity Life CEO, Nadine Tereora, says claims are increasing across the life insurance sector as policyholders age, and cancer and mental illness become more prevalent.
“We’re in the business of paying claims and I’m immensely proud we’ve been able to help our customers and their families when they need us,” she said.
“We achieved a significant customer milestone at the end of the 2019 financial year: not only did we pay $125.7 million in claims, we’ve now paid out a cumulative $1 billion in claims since we were founded in 1973.”
Tereora said Fidelity Life is ramping up its support for financial advisers to help them transition to the new financial advice licensing regime, developing professional development capabilities and resources to help advisers transition to the new regime.
Its Building Better Businesses programme is the flagship, she said, adding, “The aim is to ensure advisers have sustainable businesses, and ultimately work in partnership with us to deliver good outcomes for Kiwis.”
“The aim is to ensure advisers have sustainable businesses…”
Tereora said the company’s FY19 results show it is in good shape as it embraces unprecedented regulatory and technology changes and builds for the future.
“We’re investing in a platform for future growth built around our customers. Our goal is to set the business up for a sustainable and successful future, with our customers at the heart of everything we do,” she said.
“While there’s plenty more work to do, I’m proud of what we’ve achieved so far on our transformation journey.”
Click here to view Fidelity Life’s 2019 annual report.