NICO Holdings Plc has posted unaudited summary consolidated (group) and separate financial statements for the six months period ended 30 June 2022. The results reflect profit after tax for the half-year period of K11.8 billion. This is 68 percent higher than the K7.0 billion profit recorded for the same period in 2021.
The growth in the Group’s profitability was driven by good performance of the life insurance and banking businesses. The return to profitability of the general insurance business in Malawi also contributed to the growth in profitability in the period.
The results were posted a few days after NICO Holdings Plc held its 52nd Annual General Meeting (AGM) on 26 August 2022, at Ryalls Hotel, in Blantyre.
During the AGM, shareholders received the year ended 31 December 2021 financial results which posted a Profit After Tax (PAT) of K18.3 billion. This was 2 percent lower than what was reported for the year ending 31 December 2020.
NICO Holdings Plc Chairman, Gaffar Hassam, said the drop in the year ended 31 December 2021 PAT was due to a reduction in business for the general insurance business in Zambia and paying out of COVID -19 related death claims.
“Motor claims increased significantly resulting in deterioration of the motor loss ratio from 62 percent to 68 percent. The Covid-19 pandemic also deeply affected the performance of NICO Life. Profit after tax was down by 2 percent compared to 2021 following payment of Covid-19 related death claims, which were approximately K3 billion,” Hassam said.
He added that PAT of the general insurance business in both Malawi and Zambia fell from K1.7 billion to K787.4 million due to an underwriting loss of K1.4 billion.
Hassam, however, expressed optimism for the business due to deliberate efforts being put in place to grow the businesses that would in turn continue benefiting shareholders.
“These efforts are already yielding visible results. NBS Bank has come from making losses to making a Profit After Tax of K7.4 billion in just 4 years. That is proof that we have a plan for growth and that shareholders can trust that their investment will continue growing,” Hassam added.
NICO Holdings Plc was the first company to be listed on the Malawi Stock Exchange.
The conglomerate, which was established in 1971, has grown to have 9 subsidiaries in Malawi and Zambia, a joint venture company in Malawi and an associate company in Mozambique and an investment in a general insurance company in Uganda