FIDELITY Life Assurance (Pvt) Ltd says its management contract in Kenya earns US$25 000 monthly.
Fidelity manages Kenya
‘s largest life assurance company, Kenya National Assurance Company (KNAC).
KNAC, a company wholly-owned by the Kenyan government, was tottering on the brink of collapse and the Kenyan government turned to Fidelity in 2002 for turnaround expertise.
Fidelity managing director Simon Chapereka told businessdigest that the company was seeking an extension of the contract by at least another year.
“Our management contract expires in November and we have applied for an extension of the contract,” he said.
Fidelity was given a two-year contract to manage the affairs of KNAC in 2002.
Fidelity’s application for an extension of the management contract comes in the wake of efforts by the assurance arm to acquire a stake in the assurance concern in the event of privatisation.
It emerged this week that Fidelity has put a proposal to the Kenyan government on how to carry out the privatisation. Fidelity is eyeing a significant stake in KNAC.
It is reliably understood that Chapereka and Fidelity chairman Solomon Tembo were in Kenya last month to work on the modalities of a takeover.
Regulations in Kenya dictate that locals should have at least 35% equity in any privatised entity.
In its six months ending June 30, Fidelity’s premium income grew 585% in historical costs to $10,9 billion while underwriting profit jumped 419% from $1 billion in the year comparable.
Chapereka said the second half would be better due to partial recovery of the stock market and the devaluation of the Zimbabwean dollar.
He said Fidelity was still looking for a resident qualified actuary to run operations at its actuarial division, Zimbabwe Actuarial Consultants (ZAC). Above 40% of the division’s business is internally generated. On the performance of Vanguard Malawi, Chapereka said business over the past six months had been affected by elections.