Malawi insurance firm Nico General’s strategic partnership imminent
The Malawi financial market is rife with curiosity with prospects that Nico General’s partnership with an influential strategic investor is imminent.
This follows a cautionary statement issued by Nico Holdings relating to a strategic partner in its general insurance business which is about to be completed.
Nico General is a subsidiary of Nico Holdings, a group of companies that runs high profile establishments in Uganda, Zambia, Tanzania, Zimbabwe, of late Mozambique and NBS Bank, Nico Life, Nico Technologies, Blantyre Hotels
Nico had already partnered with Sanlam of South Africa in its life insurance business.
This announcement aided the Nico Holdings counter to trade 2.2 million shares at the Malawi Stock Exchange (MSE) the previous week.
NBM Capital Limited said while the move by Nico is strengthening its financial capacity in the wake of fierce competition and tough economic environment, it will also help to consolidate to solvency regulatory requirements as stipulated by the regulator the Reserve Bank of Malawi.
On the other hand FDH Stockbrokers says companies listed at the MSE have started issuing cautionary statements with Press Corporation Limited, TNM and FMB accordingly advising the investing public that their profit after tax for the half year ended 30th June 2013, is expected to be higher than their previous corresponding periods.
“Press Corporation has projected that the profit after tax will be 70 percent higher, whereas TNM has 35 percent and FMB is expecting a 100 percent surge. PCL’s financial statements will be released in September, 2013, TNM expects to release its results end August, while FMB will release its financial results end July. Financial statements
will be released after the Board of Directors review and approval,” FDH Stockbrokers says.
The stockbroker said the trading statements have been released as per requirement of the Malawi Stock Exchange Limited, that as soon as there is a reasonable degree of certainty that the financial results for the period to be reported upon next will differ by at least 20 percent from that of the previous corresponding period.
