One of Malawi’s leading short term insurers, NICO General posted a profit of K2.19 billion in the last financial year.
The company’s executives said in a report released on Friday that the figure represents a 17 percent growth rate experienced in 2017.
Board Chairman, Vizenge Kumwenda and Chief Executive Officer, Donbell Mandala co-signed the financial statement which attributes the significant growth to the country’s business environment.
Kumwenda and Mandala said this was coup which showed signs of improvement with inflation continuing a downwards trend from 20 percent in December 2016 to 7.1 percent in December 2017.
The company registered a growth of 20 percent in gross written premium from K12.52 Billion to K15.07 Billion in 2017 and net written premiums grew by 20 percent from K7.95 in 2016 to K9.54 billion.
NICO General Insurance Company says through support from its customers it managed to maintain a spot as the significant and leading player on the market with an average market share of 35 percent.
“The company has maintained its position as the significant and leading player in the insurance industry with a market share averaging 36 percent, which has been made possible because of the support from its loyal customers, entrenched market relationship and innovations in services and products,” reads the statement.
Its board of directors approved an increase in paid up capital of the company from K120Million to K1.204 Billion against the regulatory minimum of K750 Million which was done through a bonus issue of shares and completed in March 2018 to comply with the Insurance Directive in 2017.
The directors approved a total sum of K 1.4 Billion paid as dividend in the year compared to the K1.05 billion of 2016.
NICO General Insurance grew in 2017 despite facing challenges like premium collection challenges, increased cost of claims especially on spare parts and repair costs for motor vehicles, fraudulent claim cases and higher litigations costs.
Looking into the future, the company is developing mobility solutions to improve client service and engagement through a multiplatform to receive customer complaints and feedback and buy insurance online.
With its strong market leadership and resource base, the company is optimistic for a strong performance in 2018 and beyond as it is committed to remain compliant to all regulatory requirements and other applicable laws to ensure good governance in all areas of the business.