Profit after tax for Malawi Stock Exchange-listed conglomerate, Nico Holdings, went up by 18 percent in the year ending December 31 2019 to K14.98 billion compared to K12.73 billion recorded in 2018.
In its published financial statement, the group says gross revenue for the year also increased by 14 percent to K158.16 billion compared to K138.78 billion in the preceding year.
The statement, co-signed by Nico Group interim Chairperson, Gaffar Hassam and Group Managing Director, Vizenge Kumwenda, the growth in profitability is due to better and improved performance of the company’s general insurance, banking and asset management in the year under review.
“The general insurance business registered a 7 percent growth in growth written premiums during the year to K32.95 billion for the year ended December 31 2019,” reads the statement in part.
Meanwhile, the firm saw profit of one of its subsidiaries; Nico Life Insurance Company, going down by 23 percent to K7.23 billion from K9.42 billion in the preceding year.
The drop in profit is attributed to a decline in investment income because of low interest rates prevailing on the money market and lower valuation surpluses arising from equity investment listed on the Malawi Stock Exchange.
But in a separate statement, Nico Life Insurance Company says its gross revenue grew by 10 percent to K87.1 billion from K79.1 billion in 2018.
The total comprehensive income net of deferred tax dropped by 21 percent to K7.2 billion from K9.1 billion in 2018.
The company’s total fund grew by 20 percent to K309 billion from K258 billion in 2018, which is chalked up to implementation of planned strategies coupled with the earned returns.
The year 2019, according to Nico Life, saw a stable economy with a slight increase in inflation, which closed at 9.4 percent.
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