United General Insurance (UGI) has registered a dramatic financial turnaround, posting a profit before tax of K3.0 billion for the year ending December 31, 2024—up from a loss of K653 million in 2023.
The company’s Chief Executive Officer, Grant Mwenechanya, attributed the recovery to a deliberate and disciplined strategy focused on revenue growth, systems improvement, risk management, and long-term sustainability.
“This turn-around did not happen by chance; it was a direct result of the structure and discipline we put in place. Everyone on the team worked hard and stayed focused,” said Mwenechanya
He said UGI entered 2023 facing multiple challenges, including slow revenue growth averaging just 8%—below the inflation rate—rising claims, outdated IT infrastructure, and a strained debtors’ book with payments outstanding for more than 365 days.
“We had to make tough decisions in 2023, it was the year we addressed our weak spots, revamping claims management, upgrading our systems, and bringing our debtors under control. We did the groundwork so the business could recover properly,” he added.
By the close of 2023, revenue had grown by 25%, and long-standing receivables were reduced significantly, with the majority brought within a 90-day window. These gains set the stage for further improvements in 2024.
According to the financial statements, insurance revenue grew by 33% in 2024, while claims fell by 26%. Receivables were fully stabilized, with 100% of debtors brought within 30 days—demonstrating improved operational efficiency.
As a subsidiary of the National Bank of Malawi (NBM) plc, UGI also benefited from strengthened corporate governance and financial backing.
“Being part of a highly regulated and respected financial group like NBM plc has its advantages. Our shareholders offered strong strategic guidance and provided capital support when we needed it. That backing helped create a stable working environment,” Mwenechanya said.
Financial analyst Richard Tembo described UGI’s performance as “remarkable,” particularly given the challenging macroeconomic environment in 2024, which included an El Niño-induced climate shock and inflation averaging 32.2%.
“The reversal in insurance service results—from a K2.2 billion loss in 2023 to a K1.85 billion profit in 2024—suggests that UGI not only brought in more business but did so with underwriting discipline and improved claims management,” Tembo said. “There were also gains in investment income, largely due to favourable returns in the money market.”
UGI’s rebound marks one of the most notable turnarounds in Malawi’s insurance sector in recent years, with the firm now positioning itself for sustained growth and operational resilience.
