Fidelity Life reports solid result as customer transformation progresses
22 October 2019
Fidelity Life, New Zealand’s largest locally owned and operated life insurer and two-time ANZIIF New Zealand Life Insurance Company of the Year, has reported a solid result for the 2019 financial year as it steps up its customer-focused transformation.
Total comprehensive income (profit after tax) grew from $16.7 million in 2018 to $20.7 million in 2019. Key drivers were an $8.2 million (before tax) uplift in net premium revenue to $150.3 million, a strong focus on operating expenses and favourable movements in interest rates.
Underlying profit (excluding the impact of changes in interest rates) of $13.6 million was down on last year’s $19.2 million due in part to a 17% increase in gross claims. Fidelity Life CEO Nadine Tereora says claims are on the rise across the life insurance sector as policyholders age, and cancer and mental illness become more prevalent.
“We’re in the business of paying claims and I’m immensely proud we’ve been able to help our customers and their families when they need us. We achieved a significant customer milestone at the end of the 2019 financial year: not only did we pay $125.7 million in claims, we’ve now paid out a cumulative $1 billion in claims since we were founded in 1973.”
Fidelity Life is also ramping up its support for financial advisers to help them transition to the new financial advice licensing regime, says Ms. Tereora.
“We’ve developed some outstanding professional development capabilities and resources to help advisers make the transition to the new regime, with our Building Better Businesses programme the flagship. The aim is to ensure advisers have sustainable businesses, and ultimately work in partnership with us to deliver good outcomes for Kiwis.”
Ms. Tereora says Fidelity Life’s FY19 results show the company’s in good shape as it embraces unprecedented regulatory and technology changes and builds for the future.
“We’re investing in a platform for future growth built around our customers. Our goal is to set the business up for a sustainable and successful future, with our customers at the heart of everything we do. While there’s plenty more work to do, I’m proud of what we’ve achieved so far on our transformation journey.”
Fidelity Life’s 2019 annual report can be found here.