HomeBusiness DigestFidelity Life acquires Vanguard Malawi

Fidelity Life acquires Vanguard Malawi

Ndamu Sandu

FIDELITY Life Assurance Ltd has taken aboard Vanguard Malawi from the holding company Zimre Holdings Ltd (ZHL).


Vanguar

d Malawi was wholly-owned by ZHL.


Chief executive officer Simon Chapereka said the takeover of the Malawi venture would allow Fidelity to spearhead life and individual pensions for the group.


“This leaves Fidelity with the opportunity to drive the life and individual pensions for the group,” he said.


Vanguard Malawi had been disposed to ZHL by Fidelity and Chapereka said the takeover coupled with the business plan allows Fidelity to make a positive contribution to the group.


Chapereka said Fidelity had also acquired the Kenyan management contract from ZHL.


“We believe it is a strong boost in terms of the value of the company looking at other investment opportunities in the sub region,” said Chapereka.


He said Fidelity was looking at the East African market with a vibrant economy.


“Fidelity is looking at where there is an opportunity and market to penetrate and East Africa has been on our target,” said the Fidelity boss.


Fidelity has been undergoing changes since its transformation into a public listed company last year.


Driven by the Initial Public Offer (IPO) that raked in $2 362 billion, 18% ahead of forecast, Fidelity now has branches in Harare, Kadoma, and Chiredzi.


It is working on opening another branch in Bulawayo and Chipinge.

Fidelity, Chapereka said, would open an Executive Unit Two branch in Bulawayo.


“The executive unit branch would offer products that target those of a higher disposable income group,” he said.


The Fidelity boss said the UK project that was scheduled to begin last year would now do so next month.


“We have a strong management team with a mission to drive the pan-African initiative of ZHL,” he said.


Until its listing in July last year, Fidelity was a wholly-owned subsidiary of ZHL. ZHL now has 52% equity while the remaining 48% were taken by the IPO.


Formerly known as Legal and General of Rhodesia the company was incorporated in Zimbabwe to inherit the business of a UK insurance company.


Having first operated in South Africa, the UK company opened a branch in Bulawayo in 1936 transacting both long and short-term insurance.


The year 1982 saw the company splitting into long and short-term assurance divisions.


In 1988 ZHL bought the long-term assurance division leading to the severing of ties with both South Africa and UK.


A year later the company consequently changed its name to Fidelity Life Assurance of Zimbabwe (Pvt) Ltd.

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