Nico General Insurance Company Limited, a subsidiary of Malawi Stock Exchange (MSE)-listed Nico Holdings Limited, has projected a K2 billion (US$4 million) after-tax profit in the year ending December 2015 buoyed by its business with brokers.
The insurance firm’s chief finance officer Louis Sibande made the projection on Friday during the company’s retreat with its brokers at Sunbird Nkopola in Mangochi.
He said the company is expected to grow its profit margin after tax deductions to K2 billion, up from K1.4 billion in 2014.
“Nico General, which is the leading short-term insurer in the country with the largest market share, has brought its brokers together to thank them for being loyal business partners on one hand and to share some emerging developments on the insurance market on the other,” he said.
Sibande said the meeting was meant to address challenges dogging the industry such as expense management and controlling fraud and proper management of claims.
“The industry is failing to grow because of the high inflation level. We are shrinking as an industry in real terms because inflation remains our biggest monster, which has to be tamed to ensure sustained growth of the industry,” he said.
To realise growth prospects in 2015, Sibande said the company and its brokers would consider diversifying to agriculture and cultivating international partnerships.
–Report by Arnold Namanja, Malawi News Agency