Real Insurance Company of Malawi Limited says it has registered the first high growth rate of 59 percent with a written premium of K2 billion against K1.3 billion since it was listed on the Malawi Stock Exchange (MSE).
The insurance firm says the good results for the year ended December 2013 is indication that the company has improved greatly compared to results of the previous years, signifying that the turnaround strategic plan is bearing fruit.
The five-point plan turnaround strategy unveiled at the company’s fifth annual general meeting (AGM) by its chief executive officer Grant Mwenechanya included business growth, aggressive debtors’ management, expenses cost management, claims cost management and human resources development.
The company has posted a pre-tax profit of K241 million (US$592 137.6) in the year ended December 31 2013, compared to the K157 million (US$385 749.4) loss registered in 2012.
Real has registered an eight percent increase in liabilities mainly due to increase in unearned income which is a result of increased gross written premiums and their equity has increased from K250 million (US$614 250.6) to K505 million (US$1 240 786.2), according to a statement signed by chairperson Thom Kanyuka and one of the directors Rex Harawa.
“We thank all stakeholders for the unwavering support, the board of directors, management and staff for their hard work, contribution and continued support as the company completes the turnaround strategies and works on sustainable performance,” said the statement.
The insurance firm’s assets have grown by 23 percent from K436 million to K771 million as a result of increase in deposits with liabilities which have jumped by eight percent mainly because of increase in unearned income which comes as a result of increased gross written premiums.
Despite the profit, the company says it does not have sufficient distributable profit due to the previous year’s accumulated losses and thereby forcing directors not to recommend a dividend payment.
The insurance firm says it will continue working tirelessly to ensure a turnaround cycle is sustained and capacity is built for future improved performance and profitability.
Following an earlier public notice the company is advising its shareholders and the general public that negotiations between British-American Investment Company (Kenya) Limited (Britam), a diversified financial services group, listed on the Nairobi Securities Exchange (NSE) and Real Insurance Company Limited of Kenya which holds 65 percent majority shareholding in Real Insurance Company of Malawi Limited have now received regulatory approvals from Kenya’s Capital Markets Authority (CMA), to acquire 99 percent of Real Insurance Company of Kenya.