PAN AFRICAN Company, Liberty General is strategically repositioning itself to offer optimum service and value for money to clients in Malawi.
This is despite a decline in earnings posted in the 2017 financial year.
The company is currently focusing on a diligent processing of legitimate claims, and prudent underwriting which it strongly believes will be aided by the country’s stable economic environment.
Liberty General Insurance realised K55.88 million in 2017, representing a 28 percent downfall in profits made in 2016.
Executives disclosed this in an annual financial report released on Wednesday. Board Chairman, William le Roux and Director, Alex Chitsime co-signed the statement.
They added that the reduction of interest rates affected the company’s investment income.
Liberty General Insurance registered a growth of 37 percent in Gross Written Premium, GWP, from K1.463 billion in 2016 to K1.998 billion in 2017, and net written premiums grew by 33 percent from K1.104 billion in 2016 to K1.473 billion in 2017.
The insurer achieved a 37 percent growth rate of GWP, which is against the industry growth of 17 percent. This occurred despite the market having been characterized by severe pricing competition in the year.
Liberty General Insurance explained that the operating environment in 2017 was less conducive characterized by high interest rates, high inflation and tumbling of the Kwacha against major trading currencies which affected business growth in the year.
The company, however, said the 2017 last quarter had a stable economy as a result of the successful negotiations between the government of Malawi and the IMF for the resumption of the Extended Credit Facility, ECF.
“2017’s operating environment was less conducive characterized by high interest rates and high inflation. Due to continued withholding of direct budget support, government overcrowded the private sector borrowing thereby affecting market liquidity and overall.
Management expenses of the firm grew by 52 percent from K460.7 million in 2016 to K699.7 million as it invested in people skills and processes in order to build capacity that would deliver quality service to its customers.
The insurance company, however, faced a huge challenge with market liquidity which was extremely tight making premium recovery a serious challenge.
Consequently, this led to the cancellation of other policies thereby further depressing growth booth at gross and earnings level.