Press Corporation plc invests in new Malawi insurance company: LifeCo Holdings

Conglomerate Press Corporation plc has invested in a new insurance holding company called LifeCo Holdings Limited which will essentially trade in life insurance, pension services and asset management.

Partridge: LifeCo Holdings Ltd will also help the economy in managing the concentration risk in the country due to the duopolistic nature prevailing currently

Press Corporation plc Group Chief Executive George Partridge, who is also Chairman of LifeCo Holdings Limited, confirmed the investment in an interview, saying PCL controls 49.5% shares in the new company. The other shareholders are Equity Investments with 25.5% and Fidelity Limited with 25.5%.

He said LifeCo Holdings comprises of three operating subsidiaries namely LifeCo Life Insurance Limited, LifeCo Pension Services Limited and LifeCo Asset Managers Limited and all the three operating subsidiaries have been granted a license to operate in their respective sectors by the Reserve Bank of Malawi (RBM).

“A project was initiated in 2018 to explore the gap in the life insurance and pensions market and propose the solutions that customers were expecting.  The research revealed a significant gap in the market to better serve customers, which culminated in three of Malawi’s leading institutions combining their expertise, financial strength, customer trust, governance and championship to form a joint venture company to respond to customer needs.”

“We thought that the life insurance and pension industry could accommodate a new significant player due to the exponential growth of the sector occasioned by the enactment of the Pensions Act. In addition, the very low penetration of insurance products in general points to the potential for the substantial growth of the industry.”

“PCL wants to be part of that growth story in addition to being part of the financial inclusion movement to advance the deepening of the financial sector in general. The company will also help the economy in managing the concentration risk in the country due to the duopolistic nature prevailing currently, hence the motivation to invest in this business,” explained Partridge.

He said the joint venture company LIFECO Holdings Limited has been established to bring alternative services to customers that are looking for wider choice, competitive pricing, improved service delivery, innovative solutions and empathy.

“LIFECO Holdings’ mission, vision and values clearly articulate the research solutions and creates the promise LIFECO makes to its members. LIFECO clearly understands the customers’ expectations and commits to delivering that promise,” said Partridge.

LifeCo Holdings Limited Chief Executive Officer is Ravi Savjani while well-known experienced Insurer Osman Karim is the Chief Executive Officer for LifeCo Life and LifeCo Pensions and Lilian Yamikani Macheso is the Chief Executive Officer for LifeCO Life Asset Management.

“We want to assure Malawians that LifeCo is a Malawian company which will offer solutions for our customers and this new kid on the block is here to stay,” said Partridge.

President of Life Insurance and Pension Association of Malawi (LIPAM) Stain Singo welcomed the new company saying it will bring competition on the market which in the end will benefit customers.

“We welcome them because they will bring competition on the market which will in the end benefit customers. We have noted that they will be offering the similar products that are already on the market but maybe the difference will be on service delivery and the rates which they will charge and this will increase competition which will benefit the customer at the end of the day. We hope they will be applying to join LIPAM so that we should serve our customers better,” said Singo.

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Kapoli
Kapoli
3 years ago

Zopusa! Another financial services company for an economy like Malawi’s is redundant. Kamuzu established Press to be a multi-faceted conglomerate, not only a financial services conglomerate.

Press should spearhead the development and establishment of manufacturing/production industries.

Chikaonda dismantled Press Corporation. Partridge is continuing the same. Press shouldn’t be headed by bean-counters, it should be headed by bricks-and-mortar guys.

Amuna Kudambo
Amuna Kudambo
3 years ago

Good for employment but bad for the small Malawi Market. There are already 5 life insurance companies. This will be the sixth one.

Happy Jere
Happy Jere
3 years ago
Reply to  Amuna Kudambo

What is bad about it? This will create competition and competition brings about price reduction. Majority of Malawians are not insured and they will penetrate that gap. The said 5 have not reached. We can only with the new company well.

Dausee
Dausee
3 years ago

Zopanda nzeru. Go into production you idiots!

Thengo - Li - Weta
Thengo - Li - Weta
3 years ago

This is a company that has moved from being an economic custodian of our country to a clueless enterprise. This is 2021 and the opportunities being missed by PCL are so huge in Malawi, incredible!! You mean from ownership of: General Farming Compny Limited Press Farming Press Bakeries Press Fashions Hardware and General Dealers Press Steel Press Transport Mulanje Canning Compny ….all collapsed, ndiye lero tizikamba za Life Insurance Company yet mu NICO muli ma share a PCL kale…. it does show lack of strategic direction indeed. PTC and TNM are struggling, yet just these two companies have huge potential… Read more »

Zayadhino
Zayadhino
3 years ago

Couldn’t agree more: MTL, TNM and PTC (in those areas where Shoprite and Sana don’t operate) can do much much better. But this is what happens when you overpay corporate executives – there’s no incentive to innovate. Actually calling PCL a “conglomerate” in 2021 is not accurate; in the 1990’s it was indeed a conglomerate and controlled one third of Malawi’s economy. Since the Chikaonda, and now under Patridge the group simply exists to fund the obscene paychecks of top management. It is only NBM that drives PCL now. The lack of new thinking, coupled with the unrealistic pay for… Read more »

BornForTheSmoke
BornForTheSmoke
3 years ago

Unexpected. But it’s good to see PCL being bold and starting new things. all the best Partridge and team!

Biggy
Biggy
3 years ago

PCL is too broke to invest in mining or energy sector. Moreover, PTC and MTL may not survive this year.

PCL head Office is top heavy and must be restructured to reflect the current status of the group. Dividends meant for shareholders are being used to sustain the head office.

Putin
Putin
3 years ago
Reply to  Biggy

I can’t agree more! PCL is pathetic and lost direction during Chikaonda, and Patridge is doing the same. Unbelievable. Unbelievable! Most of these companies are just there to sponsor the lavish lifestyles of their executives. Shareholders become poorer every day.

Mbuzi kusi
Mbuzi kusi
3 years ago
Reply to  Biggy

MTL is being taken back by govt, currently MTL is rolling out Mobile network to give TNM and Airtel a tough run for their money, data must fall movement has yielded results, we will have 3 mobile operators TNM, MTL and Airtel alindi means agwilise basi chaka chino!!!

Petronella G.
Petronella G.
3 years ago

Thanks and God Bless Malawi.

Theyareevil
Theyareevil
3 years ago

Press corporation CEO is not being strategic here, I expected him to invest in mining ventures. Leave services to national bank or tnm and any of their subsidiary. Lead the development 9f mining sector and set a legacy, we are tired of exporting soil samples (millions of tonnes) at nil value.

Ndafera Nkhande
Ndafera Nkhande
3 years ago

Counter jab to end NICO dominance on the market.

Mose
Mose
3 years ago

Malawi government directly or indirectly controls both nico and press corporation so it does not make sense for the two companies to take away each others’ business. Seems you and press management have run out of business ideas.

Chalo
3 years ago

Nico is also belonging to Press corporation. Check its formation

Galimoto bokosi
Galimoto bokosi
3 years ago
Reply to  Chalo

Exactly wat they did on metal, by coming up with tnm

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