The Chief Finance Officer for the company Louis Sibande disclosed this in Mangochi during a two day retreat for Insurance Brokers that work with the company.

According to Sibande the K2 billion gross profit is expected to drop to K1.7 billion after tax.

Out of the K1.7 billion, K800 million is expected to come from technical services while the balance will be raised from investments.

The estimated profit is to be realized from projected 24% growth of NICO General Insurance in the current year.

In 2014 NICO General Insurance grew by 25% and netted profit after tax of K1.4 billion which is behind this year’s projection by K300 million.

However, the 24% projected growth is a drop from 2014 growth of 25%.

According to Sibande the drop is being observed due to factors like high inflation rates, unstable exchange rates, unstable oil prices and fraud in the industry among other reasons.

On inflation Sibande said insurance companies need to operate above inflation if they were to effectively operate as claims always hover on top of inflation.

“We are working hard to mitigate the effects of these factors by among other things diversifying to other fields of insurance such as agriculture insurance which we hope to introduce very soon”, said Sibande.

The meeting with insurance brokers was another strategy to achieve maximum profit in the current year as they contribute over 70% of NICO General Insurance Company business.

Sibande added that the interface with the brokers was aimed at beating some of the challenges the company is facing in the industry.

NICO General Insurance Company is the country’s largest insurance company which was established in 2001 from National Insurance Company.