PROFESSIONAL Insurance last year posted a 19 per cent increase in its generated gross premium to K246 billion (KR246 million), compared to K206 billion (KR206 million) gained in 2011.
Professional Insurance (PI) managing director Geoffrey Chirwa said the organisation's significant growth and audited financial results for the year ended December 31, 2012 were a reflection of its diverse portfolio of general insurance business and the focused execution of its short-term strategy.
He said Professional Insurance paid K43 billion (KR43 million) in claims compared to K66 billion (KR66 million) paid in 2011.
Chirwa said the insurance company recorded a profit before tax of K21 billion (KR21 million) compared to 2011 where K7 billion (KR7 million) was recorded.
"The profit after tax increased by 207 per cent from K4.6 billion in 2011 to K14.1 billion in 2012. Our solvency ratio improved from 47 per cent in 2011 to 69 per cent. We delivered a return on equity of 19 per cent compared to 7 per cent in 2011," Chirwa said when he presented the 2012 report at a media breakfast in Lusaka yesterday.
He said Professional Insurance's combined ratio reduced to 83 per cent in 2012 from 98 per cent in 2011, a market improvement in terms of efficiency in the business.
"Our liquid investments increased from K1 billion (KR1 million) in 2011 to K14.5 billion (KR14.5 million) in 2012. Furthermore, the total value of investments of the cooperation as at December 31, 2012 was K34.7 billion (KR34.7 million) compared to K21.1 billion (KR21.1million), representing an increase of 65 per cent," he said.
Chirwa said the company's ability to create value and derive tangible results was the reason it had long and enduring relationships with its stakeholders.
"Our commitment to corporate citizenship includes our strategy to invest in women and children. We shall continue to work towards uplifting the lives of women and children in Zambia. We shall partner with some others involved in this cause with a view to improving on the gains already recorded in this regard," he said.
Chirwa said his organisation leveraged its market position with 25 per cent market share in the general insurance sector.
He said he had confidence the insurance company would continue to grow.
Chirwa said the insurer had also reduced on the requirements for processing claims.