The Zambia State Insurance Company (ZSIC) says it has recorded a 50 per cent growth in premium income in 2018, which closed at K194 million up from K129 million recorded in 2017.
And the company looks set to list on the Lusaka Stock Exchange (LuSE) this year, marking a landmark achievement.
Company head of marketing and public relations Jacob Chirwa revealed in a statement that the company further recorded a K28 million after tax profit in the same year under review.
He availed the company’s financial performance from its latest audited financial report for the financial year ended December 31, 2018, which had been submitted to the Pensions and Insurance Authority (PIA).
“ZSIC Life Limited has concluded and submitted its audited financial report for the financial year ended December 31, 2018, to the Pensions and Insurance Authority (PIA). The company recorded a 49.6 per cent growth in premium income in 2018 closing at K194m compared to K129m recorded in 2017. There was also a reduction in the cost/income ratio by 11 per cent with 47 per cent recorded in 2018 compared to 58 per cent recorded in 2017. Cost management and control was a priority area in 2018, cutting out on unnecessary expenses and ensuring that resources are spent on key productive areas. These measures have resulted in a profit after tax of K27.6m,” Chirwa stated.
And Chirwa disclosed that ZSIC Life Limited was scheduled to list on the LuSE this year.
“ZSIC Life Limited is scheduled to list on the Lusaka Securities Exchange within the course of the year. To ensure full compliance with IFRS 9, a provision of K11m was made in the financials and a further K16m cover for the actuarial deficit under the company’s defined benefit scheme. The combined effect of these provisions was a reduction in the shareholders’ funds by K0.5m. In achieving growth, the company leveraged its widely-spread branch network and agency workforce in reaching clients across the country, reaffirming its unique position as National Life Insurer,” stated Chirwa.
“The company during the year also launched two new products namely the Chikwama Savings Plan and the Kwacha Plus Savings Plan as a response to the customer perception survey recommendations, which was undertaken in the prior year. ZSIC Life has also continued to make its contribution in the attainment of the National Financial Inclusion Strategy (NFIS), which has set out a target of increasing the financial inclusion from 59 to 80 per cent in the informal sector as well as an increase in formal financial inclusion from 38 to 70 per cent by 2022. Currently, the statistics point to below 5 per cent in terms of insurance contribution to the GDP.”