United General Insurance (UGI) Limited has reported a remarkable financial turnaround, with its profit after tax soaring to K2.168 billion from a loss of K0.326 billion in 2023. This represents a 764% improvement in the company’s financial performance.
According to the company’s 2024 financial statement, the significant growth in profit was accompanied by a 33% increase in insurance revenue, which rose to K10.628 billion from K7.991 billion in 2023. The growth was driven by the successful acquisition of new business, reflecting the effectiveness of UGI’s strategic initiatives aimed at expanding its market reach.
The financial statement was signed by Chairperson Harold Jiya and Director Lester Tandwe, highlighting the company’s strong leadership and commitment to growth and profitability. The significant turnaround in UGI’s financial performance is a testament to the company’s resilience and ability to adapt to changing market conditions.
“As a result, total equity rose by 143%, from K3.523 billion to K8.549 billion, bolstered by a new capital injection of K 2.795 billion.
“Net investment income improved significantly, growing by 38% to K2.773 billion from K2.013 billion in the previous year. This was largely attributed to a more diversified and strategically optimized investment portfolio, which delivered enhanced return,” reads the statement.
Operational efficiency gains were evident in cost containment measures. Insurance service expenses declined by 26%, decreasing to K7.281 billion from K9.882 billion in 2023, underscoring the Company’s commitment to prudent cost management.
According to the statement, UGI’s total assets increased by 41%, reaching K20.343 billion from K14.453 billion, while cash balances rose sharply by 129%, from K2.676 billion in 2023 to K6.120 billion.
The statement added that despite these positive developments, the company also faced cost pressures, with other and management expenses increasing by 47% to K1.387 billion, compared to K0.946 billion in the previous year.
“This was primarily driven by rising commodity prices, which placed considerable strain on the cost base,” reads part of the statement.
UGI, which transitioned from an associate to a subsidiary company of National Bank of Malawi (NBM), said it restructured its business model to be more sales-driven and customer-centric, positioning itself for sustainable long-term growth.
0 Comments