The recently published Financial Industry Sector annual report by the Reserve Bank of Malawi (RBM) shows that the sector registered an after tax profit of MK8.5 billion, compared to MK9.1 billion registered in December 2018.

Last year, the central bank also showed that Malawi remains at the bottom when it comes to insurance penetration at regional level. South Africa’s penetration rate of 16%, Namibia’s 6.9% and four percent each for Zimbabwe, Mauritius and Lesotho. Malawi records a 2.01%, up from 1.4% recorded in January 2018.

A year further, the report shows that the general insurance sector grew in terms of total assets, premium written and profitability. Figures on the report show that total assets grew by 12.1% to K55.8 billion while premium written grew by 13.4% to K54.6 billion. “Nonetheless, the sector continued experiencing solvency and liquidity vulnerabilities owing to inadequate capital in a few insurers and high insurance receivables across the sector.” says part of the report.