Nico General Insurance Company has registered a profit after-tax of K1.46 billion, a 17 percent decrease from the previous year’s K1.7 billion.
The company has attributed the decrease to lower investment returns.
A statement accompanying the financial results co-signed by Nico General chief executive officer Eric Chapola and chairperson Felix Mlusu, said the business environment was characterised by slow economic growth and few new insurance business opportunities in the economy.
“Despite better cash flows resulting from improved collections performance of the investment portfolio, the year did not meet expectations mainly due to comparatively lowreturns on the equity and money markets,” reads the statement.
The insurance firm, a subsidiary of Malawi Stock Exchange (MSE)–listed Nico Holdings Limited, said the market was faced by several challenges in the year; among others, stiff competition, cancellation of policies for non- payment of premiums, increase in crimes and bank robberies.
The insurance firm, however, observes that it achieved strong financial performance in gross written premiums which grew by 24 percent from K774 billion to K962 billion and net written premium growth of 28 percent from K5. 27 billion in the previous year to K6.73 billion last year.
With the inflation rate coming down, the firm predicts that the business and economic environment will continue to be weak, particularly with the continued withholding of donor aid.
“Strategies have been put in place to contain any negative effects and also take advantage of any opportunities that may arise as the economy recovers. The company will still deliver the possible service and is committed to ensuring ever improving customer satisfaction,” reads the statement.