Despite posting a 54 percent drop in after-tax-profit, Real Insurance Company of Malawi is anticipating positive profit growth in 2015 due to its “trademark” five-point-plan.
During its annual general meeting held at Sunbird Mount Soche on Monday, chief executive officer (CEO) Grant Mwenechanya admitted 2014 was a tough year, but expressed optimism in 2015, saying: “Real Insurance was not doing well, so we have a strategy which encompasses five strategic areas. These involve focusing on growth of the business, ensuring efficient debt collection, verifying suspicious claims to reduce fraud, spending within the budget as well as retaining our human resource base,” said Mwenechanya.
During the year-ended December 31 2014, the company raked in about K111 million as after-tax-profit compared to over K240 million in 2013.
The insurer also registered a 34 percent growth in written premiums from K2.1 billion to K2.8 billion while its total assets rose from K1.7 billion to K2 billion, representing a 19 percent growth. Share price jumped by 130 percent from K1.00 to K2.30 while equity underwent a 22 percent increase from K502 million to K 613 million. Investment income also got a 19 percent boost from K165 million to K196 million.
According to the company, 2014 was characterised by high inflation, interest rates as well as an increase in reinsurance premiums among other expenses.
As a result, the board did not recommend payment of dividends to shareholders for the year-ending 2014.