Fidelity Life Shows Improved Underlying Results as Transformation Momentum Accelerates
Fidelity Life’s core business continued to perform well in fiscal 2021 as it drove transformation spending and remained resilient to the economic impacts of COVID-19.
The underlying profit of the country’s largest local life insurer for the fiscal year ended June 30, 2021 increased to $ 22.5 million from $ 20.3 million in 2020. The main factors were an increase of $ 6.1 million in net premium sales through strong new business, less than expected. failures and rigorous expenditure management.
The company paid $ 130.8 million in claims to its customers, up from $ 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 the company’s new technology platform and the planned acquisition of Westpac Life. In addition, a sharp rise in government bond rates had an impact of $ 7.3 million (net of tax).
Chairman Brian Blake said the $ 400 million deal with Westpac Life was one of the most significant events in the company’s history and, once concluded, Fidelity Life would welcome Ngāi Tahu Capital as main shareholder alongside the NZ Super Fund.
“In addition to strengthening our New Zealand ownership credentials and providing better access to capital, having two iconic New Zealand investors on our share register sends a strong signal to the market about the quality and potential of Fidelity Life. “
CEO Melissa Cantell, who started at Fidelity Life in January 2021, said she was pleased with the company’s achievements and looked to the future with confidence.
“We have worked hard this year and put a solid foundation in place. We have continued to invest in our transformation, while delivering an underlying result which shows that our core business of providing life insurance to New Zealanders is doing well.
“As we look ahead, there is much to be excited about as we work on our aspiration to reinvent life insurance. Completing our technology development and the game-changing acquisition of Westpac Life will be critical, as will we ensure we stay focused on our customers. “
Fidelity Life’s 2021 annual report can be viewed on the company’s website or by clicking here.
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