Malawi Stock Exchange (MSE)- listed financial services group, Nico Holdings Limited, plans to open a general insurance company in Mozambique.
The group’s managing director Felix Mlusu, speaking on the sidelines of Nico Holdings 45th annual general meeting in Blantyre on Friday, said the general insurance market in Mozambique has potential to provide good returns to the company’s shareholders.
He said the group will use its expertise in the insurance industry to invest in general insurance business in Mozambique.
“Mozambique has a yearly growth rate of seven percent. We, in view of this, wish to take advantage of this and open up a general insurance company to boost our profit base and increase returns to our shareholders,” he said.
In 2012, Nico Holdings entered the Mozambican market where it opened a life insurance company named Nico Mozambique Vida Companhia de Seguros S.A.
However, in view of “insufficient assets to meet the policyholder liabilities and regulatory solvency requirement” the company was insolvent as at December 31 2014, according to QED Actuaries and Consultants (Private) Limited.
Mlusu expressed confidence that 2015 will be a year of continued growth for the financial services group.
“We have ensured that the company has strategies in place and that it is adequately resourced to address any challenges that any shocks in the economic environment may pose and exploit any opportunities that may come,” he said.
Besides Malawi, Nico Holdings also operates general insurance business in Zambia, Tanzania and Uganda.
Nico Holdings shareholders approved a final dividend of K522 million (US$1.2 million), representing 50 tambala per share.