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Nico Group profit down 8 percent

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Profit-after-tax for financial services firm Nico Group for the six-month period ended June 30 2021dropped by 8 percent to K7.0 billion from K7.64 billion.

The group attributes the performance to an increase in Covid-related claims in its life insurance business and delay to resolve a reinsurance dispute on a large claim in the general insurance business in the country.

According to a published financial statement, co-signed by Nico Holdings plc Group Managing Director Vizenge Kumwenda and Board Chairperson Gaffar Hassam, Nico says other comprehensive income was positive in the period compared to a loss reported in 2020 due to translation losses on consolidation of Nico Zambia.

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“Total profit and other comprehensive income of K7.2 billion was 1 percent above the K7.1 billion recorded for the same period in 2020. A strong performance of the banking business anchored performance of the group despite the challenging operating environment,” the statement reads.

It further indicates that gross revenue increased by 19 percent to K102.7 billion from K86.35 billion for the same period in 2020.

The group anticipates that inflationary pressure will arise from the gradual depreciation of the Kwacha against major currencies and rising fuel prices, with the Covid pandemic also remaining the biggest threat to growth prospects.

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Nico, however, says despite the afore mentioned challenges, they are well positioned to manage the risks appropriately and expects to report satisfactory performance for the rest of the year.

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