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Real Insurance posts K321m loss

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Malawi Stock Exchange listed insurer, Real Insurance has posted a K321.5 million loss in the first half of 2015 as claim provisions increased, the company said Wednesday.

This is compared to a profit of K27.6 million posted during the six months of last year.

Real chairperson Thom Kanyuka also attributed the loss to an increase in growth expenses.

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Despite the economic challenges that characterised the first half of 2015, Kanyuka said the company grew by 38 percent with gross underwritten premiums of K2.124 billion against K1.54 billion during the same period last year.

Kanyuka said operating expenses grew by 44 percent from K322 million to K465million.

“This was driven by on-going investment in superior information technology, including staff training. Investment income grew to K131 million from K94 million the same period last year,” said Kanyuka.

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He further said Nico’s assets grew by 44 percent buoyed by an increase in deposits from K1.01 billion to K1.4 billion and receivables from K452 million to K753 million in line with premium growth.

Liabilities, on the other hand, shot up by 66 percent due to an increase in unearned income which, according to Kanyuka, is a result of increased gross written premiums and increased claims reserves.

Looking ahead, Kanyuka said the purchase of 65 percent shareholding by British American Investment Company (Kenya) Limited has resulted in the company taking a huge leap forward whose fruits will be seen in the near future.

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