Nico General Insurance Company, a subsidiary of Malawi Stock Exchange (MSE)-listed Nico Holdings Limited, earned K670 million ($937 063) in gross written premium in 2015 buoyed by an insurance policy dubbed Mtetezi.
This is a 34 percent jump from the previous year’s K500 million ($699 301), according to the insurance firm’s chief executive officer Eric Chapola.
Speaking in Blantyre last week, he said the company has made tremendous strides in terms of profits since 2012 when they launched the Mtetezi insurance cover.
The policy protects tobacco farmers against loss or damage to their crop, which is critical to the country’s foreign exchange generation.
Chapola said Nico General’s gross written premium has been improving annually since 2012.
“Since 2012, Nico General’s profits have been growing and a proportion of such proceeds come from the Mtetezi scheme. We expect the scheme’s proceeds to reach about K800 million by next year; hence, marketing this product with lots of energy,” he said during an annual stakeholders’ workshop.
The workshop was aimed at briefing brokers, agents, commercial banks and micro finance institutions that work with the company on the performance of their products and services.
He said tobacco farmers have realised the importance of the insurance policy, which serves as surety on loans advanced to them by financial institutions and as an indemnity vehicle in case of accidental damage, loss or theft of tobacco.
Oscar Mpando, managing director for Marsh, one of the local insurance brokers, said they are satisfied with how Nico General pays claims to their clients.