Fidelity Life Sees Profits Rise Due to Increased Business


Underlying profit for Fidelity Life, the country’s largest locally owned life insurer for the year ending 30 June 2021, rose to $22.5 million from $20.3 million in 2020.

The company saw a $6.1 million uplift in net premium revenue off the back of strong new business, fewer policy lapses, and robust expense management.

The company paid $130.8 million in claims to its customers compared to $139.7 million in 2020.

Total comprehensive income fell to $4.3 million from $17.9 million in 2020, reflecting a total of $9.3 million invested in key transformation projects (net of tax), including the firm’s new technology platform and the proposed acquisition of Westpac Life.

In addition, the firm says a sharp rise in government bond rates had a $7.3 million impact (net of tax). During the year it accepted 93% of all claims (it paid 92% of claims in 2020).

The company also says in its annual report that it expects its in-force market share to grow from 11.6% currently to around 17%, positioning the firm as the country’s second largest life insurer.

Fidelity Life Chair Brian Blake says the $400 million Westpac Life deal was one of the most significant events in the company’s history.

CEO Melissa Cantell, who started at Fidelity Life in January 2021, says there’s a lot to be excited about “as we work towards our aspiration to re-imagine life insurance”.

“Completing our technology build and the game-changing acquisition of Westpac Life will be key, as will ensuring we maintain our relentless focus on our customers,” she says.

Fidelity Life’s 2021 annual report can be found here.