Fidelity Life reports ‘rock solid’ 35th year

FOR IMMEDIATE RELEASE
Monday 3 November 2008

Fidelity Life reports ‘rock solid’ 35th year despite market cracks

Fidelity Life, the largest New Zealand-owned and controlled life insurance and investment company, has reported a record profit in its 35th year of operation of $15.5 million for the year ended 30 June 2008, an increase of 20% over last year’s result of $12.9 million.

Shareholder funds also significantly increased 21% from $73 million to $88 million and remain comfortably above 25% of policy liabilities.

Additionally, the Directors have authorised an ordinary dividend of 100 cents a share (75 cents last year).

Since its inception in 1973 Fidelity Life’s assets have grown from a quarter of a million to over half a billion dollars.

Fidelity Life’s CEO, Milton Jennings says stability has been a core focus from day one.

“It’s Fidelity Life’s level of stability that will provide reassurance to the market during these uncertain and turbulent economic times.”

Reflecting over the last 12 months Mr Jennings concedes it has been a demanding year, with the introduction of new adviser and provider regulations, a new taxation regime, the introduction of KiwiSaver and the international and local credit crunch.

“Many hurdles presented themselves this past year, but Fidelity Life was able to overcome them and still make a healthy profit.

“We’re prudently managed yet flexible enough to adapt and respond to the challenges,” says Mr Jennings.

For the 12th successive year leading international rating agency, A.M. Best reaffirmed Fidelity Life’s A- (Excellent) credit rating.

Fidelity Life is committed to sustainable business practices and ranked in the top quarter of employers surveyed in the most recent Unlimited magazine Best Places to Work Survey. Staff numbers have increased from 111 to 123 for the year ended 30 June 2008, and Fidelity Life has the highest staff retention rate in the life insurance industry.

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