NMB banc assurance unit above target since inception, group targets new insurance products

NMB banc assurance unit above target since inception, group targets new insurance products

By Insurance24

HARARE, NMB Bank’s banc assurance is targeting to introduce new insurance products into the market to consolidate the growth achieved since introduction of insurance services into the group’s operations 5 years ago.

Banc assurance Manager Ellen Chigodora told Insurance24 that during 2017, the banc assurance unit performed above budget despite a decline is some income streams.

“We are above targets to date from the time we introduced the products. The only area we are going down is income from Zinara which used to give us 5% commission, but they are now giving us 3%since they have on boarded a lot of insurers among other various super markets,” she said.

She added that it is the only area where income went down, but did not affect the overall performance and targets. She said the company will continue to innovate and develop new products that move with the market.

“Today’s market is evolving and it is good to innovate and look at what the market wants, where the risks are and what the insurers are willing to underwrite and formulate new products,” she said, adding that such products will ride on existing ones.

NMB launched a Bancassurance unit in 2013, predominantly selling short term insurance products underwritten by Old Mutual Insurance Company.

Meanwhile, Group interest income for the year was 5.31% down at $32.06 mln compared to $33.86 mln during prior year. Net interest income was however up 0.53% to $22.90 mln from $22.78 mln largely on lower interest expense which declined 17.32% to $9.15 mln from $11.07 mln in 2016.

The Bank according to Chief executive officer Benefit Washaya is targeting a Non-Performing Loan (NPL) ratio of 5% by year end 2018 from 7.98% as at 31 December 2017 which will be driven by increased recovery efforts, write offs and growth in the loan book.

The Group recorded an after tax profit of $9.93 mln compared to an after tax profit of $5.05 mln in 2016.