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Fidelity Life announces significant profit lift
26 September 2013
Fidelity Life announces significant profit lift
New Zealand-owned life insurance company, Fidelity Life, has announced net profit of $17.1 million after tax for the year ended 30 June 2013, up 25% from the previous year.
Chairman Ian Braddock said the company’s increased profit was driven by a 10% rise in premium income off the back of record new business production of $14.8 million and a sharp increase in investment income.
“This result is a significant improvement on the $13.6 million achieved in 2012 and caps off what has been a year of change for Fidelity Life. As well as a continued focus on cementing our position as a leader in the life risk sector, we undertook two major transactions including the acquisition of the TOWER Life business and the divestment of the Fidelity KiwiSaver Scheme.
“Although these transactions did not complete until the new financial year, they were a major focus for the board and many of our staff in 2013. They are indeed significant milestones in the history of the company,” said Mr Braddock.
The company announced the purchase of the in-force life insurance business of TOWER Health & Life and the group risk business of TOWER Life (NZ) Limited in May this year. The completion of the purchase in August makes Fidelity Life the largest New Zealand owned life insurer and the third largest life insurer in the country.
“This transaction signals the board’s determination to continue to grow the business through both strategic acquisition and organic means,” said Mr Braddock.
Looking to the future, Chief Executive Milton Jennings said the landmark activities of the past year positioned the company well for the future.
“We are focused on the successful integration of the TOWER business over the coming years, and the huge opportunity this presents for reinforcing our position as a leading insurance and investment provider in the New Zealand market,” he said.
The company’s annual report, released this week, can be accessed via the following link: http://epublishbyus.com/fidelity_life/10033894
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