Fidelity Life Returns to Profit


The latest annual result from Fidelity Life shows a profit for the full 2023 year of $3.2m (net of tax), a stark improvement on its 2022 loss of $24m.

The firm states that a full year’s contribution from its Fidelity Insurance subsidiary, acquired from Westpac Group in 2022, is the key driver behind the result.

The company says the improved performance was expected following the acquisition, and reflects broad growth across the business and a strong capital position.

Insurance premium revenue was up 33%, from $338.4 million in FY22 to $450m in FY23, and claims expenses grew 27%, from $164m in FY22 to $209m in FY23 (net of tax).

Meanwhile the company’s future-proofing programme continued, with $37m of transformation expenses incurred in FY23 compared to $20.1m in FY22. $16m of FY23 transformation expenses related to the ongoing Fidelity Insurance integration (net of tax). The firm has a 15.7% market share.

Advisers have been at the heart of our success since 1973…

Fidelity Life’s shareholders, including the NZ Super Fund, Ngāi Tahu Holdings and the Fidelity Family Trust, were rewarded with a full-year dividend of $8.013 per share. The dividend is unimputed as the Group continues to utilise brought forward tax losses.

Brian Blake, Fidelity Life's chairman.Brian Blake
Brian Blake.

Fidelity Life Chair Brian Blake says the board is pleased to have delivered a significantly improved performance in the company’s 50th year in business.

“Our strong capital position has also allowed us to reward our shareholders by resuming dividend payments.”

Looking forward to FY24 and beyond, Brian says the company is focused on completing the Fidelity Insurance integration and delivering more for financial advisers.

“Advisers have been at the heart of our success since 1973 so, to recognise this in our 50th year, we have renewed our commitment to the adviser channel.

“In response to adviser feedback, we’re introducing a raft of new initiatives spanning the digital, product and service spaces to make it easier for advisers to do business with us, focus on growth, and together take our respective businesses to the next level.

Fidelity Life cover 2023 annual report
Click the cover to download Fidelity Life’s 2023 annual report.

“We’ve also unveiled plans for an extensive engagement and professional development programme for up to 125 advisers each year called Adviser edge. This builds on the success of our Career connect skills and training course, and will cater for advisers at every stage of their career.”

Fidelity Life’s FY23 annual report, Proud history, strong future, can be found here.