NIC posts 11pc revenue surge, strengthens expansion agenda

DAR ES SALAAM: THE National Insurance Corporation (NIC) recorded a strong performance in the year ending 2023/24 with revenue rising by 11.0 per cent thanks to diversified investment portfolio.

The Corporation, the largest insurer in the country, earned 130.33bn/- in insurance revenue during the year up from 117.42bn/- posted in the preceding year of 2022/23. This growth drove a 25.98 per cent increase in insurance service results, rising to 35.06bn/- in 2023/24 from 27.83bn/- registered by the corporation in the previous year.

NIC’s Chairman Mr Justine Mwandu said amid the positive performance, the Corporation is well-positioned to expand its future operations.

“Our diversified investment portfolio and our commitment to prudent risk management place us in a strong position to seize new opportunities while effectively managing risks. “We remain vigilant, adaptable and focused on delivering sustainable value to our stakeholders amidst changing market conditions,” said Mr Mwandu during the Corporation’s 57th Annual General Meeting (AGM) held on Sunday.

The NIC also reported a profit after tax of 23.59bn/- for 2023/24, slightly down from 25.57bn/- earned by the corporation in the previous year ending 2022/23.

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In addition, during the financial year 2023/24, the insurer’s total assets also grew by 12.72 per cent, reaching 422.55bn/- in from 374.86bn/- recorded in the preceding year.

Meanwhile, shareholders’ equity rose by 15.85 per cent to 287.85bn/- up from 248.47bn/- in 2022/23. Representing the Treasury Registrar, the Director of Performance Management, Monitoring and Evaluation for commercial public entities, Ms Lightness Mauki commended the progress and reaffirmed government support.

She said that the government continues to create an enabling environment for state-owned entities, with total public investments now reaching 86tri/-.

Such investments to government entities have enabled the NIC board to propose a dividend payment of 2.10bn/- to the shareholders for the financial year ending June last year, an increase of 40 per cent compared to the 1.5bn/- proposed the previous year.

“These investments are substantial and must yield returns. We are pleased to see the NIC board fulfilling its responsibilities in line with government directives,” said Ms Mauki.