Fidelity Life reports $9.3m profit

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Fidelity Life has reported profit of $9.3 million for the six months to 31 December 2010 and a huge 51% increase in KiwiSaver funds under management in unaudited key financial indicators.

Thursday, March 3rd 2011, 12:54PM 1 Comment

The $9.3 million profit to 31 December, compares favourably with the $6.4 million earned in the previous six months, but was slightly less than the $10.5 million in the first half of the financial year.

New business production increased by 23% to $7.9 million ($6.4 million); and renewal premiums were $39.4 million, 7% higher than last year.

Fidelity Life chairman Ian Braddock says overall the company has had a very satisfactory six months.

"While operating conditions in the risk market remain challenging and investment returns are still volatile, your Directors continue to remain confident about the Company's future growth prospects."

He also says the increase in KiwiSaver FUM was "phenomenal" with a 51% from $115.6 million to $174.5 million. This follows the result of Fidelity Life being a finalist in the inaugural Fund Source KiwiSaver manager of the year awards.

Fidelity Life shareholder John Riddiford says he thinks it is an outstanding result for the company in some pretty tough times.

"There's been an obvious downturn in production in the industry with regulation and exams, so it's an incredible increase in production and KiwiSaver."

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