One of Malawi’s insuring firms NICO General Insurance Company Limited has registered a staggering 3,754 percent increase in profits for the financial year ending December 2012.
The company made a profit after tax of 611 Million Kwacha, up from the 16.2 Million Kwacha that was realized in 201, according to a statement signed by NICO General Insurance CEO Eric Chapola and Chairman Felix Mlusu.
NICO General Insurance made over 1.1 Billion Kwacha after selling some of its property, plant and equipment but did not score as much on loan repayments from other companies who could only payback 21.2 Million Kwacha.
The statement attributes the success to the exceptional performance on the investment portfolio front due to high interest rates and availability of more funds resulting from improved premium collections.
NICO General Insurance collected 4.9 Billion Kwacha in Gross Premiums which is slightly higher than the 3.6 Million Kwacha realized in 2011.
Insurance premiums are the financial contributions that clients are supposed to make once they take out an insurance policy.
Despite the success, the company says it was affected by high loss ratio under the motor account and clients who could not continue with their policy.
Chapola and Mlusu also revealed that the company would enter into new partnerships and pursue innovation, as prospects for a rebound of economic growth will present opportunities in mining, construction, agriculture and e-commerce