TABLE OF CONTENTS LETTER TO THE MINISTER OF FINANCE

Transcription

1 TABLE OF CONTENTS LETTER TO THE MINISTER OF FINANCE 3 REGISTRAR S FOREWORD ECONOMIC OVERVIEW MISSION STATEMENT STRATEGY FOR REGULATION AND SUPERVISION LEGAL FRAMEWORK LICENSING AND REGISTRATION ONGOING SUPERVISION Offsite surveillance On-site Examinations EXIT ADMINISTRATION REGULATORY AND SUPERVISORY ACTIVITIES INSURANCE Licensing Development of Policies and Regulations PENSION Enactment of the Pension Act Pension Public Awareness Initiatives DEPARTMENTAL DEVELOPMENTS, ACTIVITIES AND PROJECTS STAFF RECRUITMENT AND DEVELOPMENT STRESS TESTING PERFORMANCE OF THE INSURANCE SECTOR General Insurance Overall Performance Premiums Reinsurance Claims Underwriting and Operating Results Balance Sheet LIFE INSURANCE Overall Performance Market share (Premium) Reinsurance Cessions Underwriting Experience Balance Sheet INSURANCE BROKERS PERFORMANCE OF THE PENSION SECTOR Pension Funds and Pension Members Pension Fund Assets and Market share Pension Contributions 32 1

2 6.4.4 Administration Fees APPENDICES LIST OF TABLES AND CHARTS General Insurance Life Insurance Insurance Broking Pension LICENSED MARKET PLAYERS IN General Insurance Companies 44 Life Insurance Companies 44 Reinsurance Companies 44 Insurance Brokers 44 Agents for Brokers 44 General Insurance Agents 44 Insurance Loss Assessors or Adjusters 45 Life Insurance Agents DEPARTMENTAL STRUCTURE OF PENSION AND INSURANCE SUPERVISION 48 LETTER TO THE MINISTER OF FINANCE RESERVE BANK OF MALAWI GOVERNOR S OFFICE CONVENTION DRIVE TEL: (265) RESERVE BANK OF MALAWI FAX: (265) / P O BOX WEBSITE: LILONGWE reserve-bank@rbm.mw MALAWI Honourable Dr. Ken Lipenga Minister of Finance P.O. Box Capital City LILONGWE 3 31 December 2012 Dear Honourable Minister, Pension and Insurance Report 2011 Pursuant to the requirements of Section 18 of the Financial Services Act, 2010, I have the honour to submit the Pension and Insurance Report for the year ended 31st December Yours sincerely Mr Charles Chuka REGISTRAR OF FINANCIAL INSTITUTIONS 2 3

3 Registrar s Foreword The financial sector generally faced a challenging macroeconomic environment in the year Foreign exchange scarcity, fuel shortages and persistently escalating inflation, were top among the challenges. The general insurance sector in particular faced a proliferation of claims, increasing credit risk resulting in high volumes of insurance debt, and many other challenges. Notwithstanding the challenges, the year also capped a significant milestone for the pension industry following the promulgation of the Pension Act. This was one of the remaining laws in a series of Acts which the Reserve Bank of Malawi started pursuing in 2005 within the context of financial sector reforms. Coming hot on the heels of the Insurance Act and the plunder. To this end, my office, through the Pension Financial Services Act, the Pension Act introduces and Insurance Supervision Department and other a mandatory national pension scheme aimed at implementing partners has a daunting task ahead promoting retirement savings for all employees to lay the regulatory and supervisory framework in Malawi. Let me therefore acknowledge the of pension regulation in Malawi that will enforce contribution of various stakeholders that participated disciplined market conduct and compliance in the in the drafting of this very important law. industry. We strongly believe that the pension sector will play a pivotal catalyst role in the development of Importantly, the main objective of the Pension Act the financial sector. The accumulation of savings is is to improve financial security of employees in important for the much needed capital formation in their retirement and goes a long way to improving Malawi and it will be useful to put this capital into the socio-economic wellbeing of people in old age. productive areas that will ultimately contribute to The cultural blocks of communal life that lead to more balanced economic growth. dependency of the old aged on economically active close relations are slowly disintegrating. And in the Based on information collected so far, it is pleasing to absence of a formal social security system in Malawi, note that annual pension contributions have already the introduction of the pension law is a step towards exceeded K8 billion in 2011 alone. Given that the bridging the widening gap. However, delivering a law is new, we anticipate this figure to rise incredibly mandatory pension regime demands a framework as compliance improves. Pension assets currently that ensures all service providers in the pension stand at K67.7 billion, which is about 10.1 percent of industry, including the pension funds and trustees, GDP. The Malawi Stock Exchange offers a window act in the best interest of pension fund members in to companies, private or public, to tap into these order to preserve and protect the value of retirement resources. The pension sector will therefore play savings. There should be no room for abuse and a key role in supporting development of the stock exchange. Further, the pension sector will also create demand for longer tenure debt instruments. The imposition of life insurance for all employees also creates business opportunities for the life insurance sector. The insurance sector has also registered significant strides since the new Insurance Act came into force in Prior to the new law, the industry was operating using an archaic law which gave the Registrar limited powers and was highly inflexible to implement. With the advent of the new laws, the Registrar focused on putting in place a strong regulatory framework to enforce good market conduct and introduce a solvency regime. Externalization of insurance risks arising in Malawi was limited to where the local industry does not have adequate capacity to take the risk. However this requires that local insurers also have adequate capital levels to absorb risks. In line with this objective, the Registrar issued seven directives covering various aspects that ranged from introducing strong corporate governance standards to minimum capital and solvency requirements. During the year, general insurers were therefore on a drive to align their businesses to the new regulatory framework. Most short term insurers were carrying toxic debt on their balance sheets, and were forced to write the debts off in a bid to clean the balance sheets, which resulted into the insurance industry posting poor results and also causing the industry to shrink in asset size. The Registrar expects that following this exercise, combined with introduction of the Premium Payment Directive, insurers will stop accumulating unsustainable debt levels which will eventually improve their performance. The challenges in the year also saw the life insurance sector slowing to deliver a moderate performance following an impressive performance in The life insurance sector assets grew to K68.8 billion. As the life insurance companies have historically been involved in pension administration, the promulgation of the Pension Act created further opportunities through pension administration as well as the mandatory requirement of life insurance for all employees. While these opportunities exist, it will be important to ensure that the transparency and accountability standards of the life insurance companies is enhanced to ensure that consumers make informed decisions and choices. My office will therefore be reviewing the need for segregating assets and roles by various service providers in the life insurance and pension sectors. The year ahead will see more instruments developed to help in implementation of the primary laws. In order to deliver on all this, my office will need to develop capacity to carry out such reviews and deliver on our mandate to regulate both the insurance and pension sectors. In this regard, a recruitment drive has been embarked on in order to source personnel to man the Pension and Insurance Supervision Department which capped a year of existence. Training of staff in relevant skills will also be critical. Identifying resources to achieve this will not be easy. Mr Charles S. R. Chuka REGISTRAR OF FINANCIAL INSTITUTIONS 4 5

4 1.0 Economic Overview 1 The economy remained relatively resilient amid shortages impacted greatly on the general insurance internal and external imbalances. The performance sectors ability to pay to foreign reinsurers. of the economy registered lower GDP growth of Growth in the financial services stood at percent in 2011 compared to 6.7 percent in percent in 2011 compared to 10.6 percent during However the key performers during the year included the preceding year. Total assets of life insurance agriculture, forestry and fisheries; electricity, gas and water supply; information and communication; and companies (including pension assets held by these financial services; mainly in the life insurance and companies) were valued at K68.7 billion up from banking sectors. The outlook for 2012 does not K billion in 2010 while general industry assets suggest improved performance as the economy is shrunk by 7.9 percent to K10.6 billion from K11.5 projected to grow by 4.3 percent. billion in 2010 mainly as a result of insurance debt write offs. Overall the life insurance sector assets The agricultural sector continues to be the main grew by 9.1 percent. Total assets of the banking driver of the economy with tobacco remaining the sector increased from K282 billion to K372 billion. main contributor. The sector registered a 6.4 percent The growth was also supported by the mandatory growth in 2011, up from 2.0 percent recorded in requirement that public servants should open bank Tobacco production as recorded through the accounts for salary payments. The Malawi All Share auction floors in 2011 increased by 7.7 percent to Index (MASI) recovered from the annual negative million kilograms from million kilograms return of 3.92 % registered in 2010 to a positive sold in the preceding season. The improvement return of 8.41 % registered in 2011 anchored by an in sales volume is reflective of increased tobacco increase in both traded volume and value. production on account of improved uptake of inputs by smallholder farmers and relatively favourable Activity in the mining and quarrying sector registered rains. As a result of the increased volumes, tobacco a decline of 4.5 percent in output in 2011 compared prices plunged significantly during the 2011 season. to growth rate of 80.2 percent in This Tobacco average prices dropped by 34.4 percent to was largely explained by a significant drop in the US$1.24 per kilogram from US$1.89 per kilogram production of rock aggregates as well as a slowdown fetched during a corresponding period in As a in coal mining. The sector is expected to rebound in consequence, earnings from tobacco decreased from 2012 to a growth rate of 13.9 percent supported by US$416.8 million in 2010 to US$293.7 million in increased demand for coal and quarry stones. The The low earnings coupled with reduced donor manufacturing sector on the other hand grew by support that characterised the year contributed to 1.7 percent in 2011 compared to a growth rate of the flagging supply of foreign exchange, which fell 2.2 percent in the preceding year. The development extremely short of the demand. The foreign exchange was largely explained by supply side constraints due to foreign exchange shortages, irregular fuel and electricity supply. Some improvements are expected in 2012 with the growth rate projected at 2.0 percent. Inflationary pressures mounted in 2011 as the annual headline inflation averaged 7.6 percent in 2011 compared to an annual average of 7.4 percent in The increase in inflation emanated from both food and non-food factors and was experienced in both rural and urban areas following developments that took place during the latter part of the year that included the devaluation of the kwacha in August 2011, the fuel pump price hike in November 2011, and the scarcity of the maize grain particularly in the Shire valley. Inflation closed the year 2011 at 9.8 percent compared to 6.3 percent in December The framework for monetary policy management in 2011 remained that of monetary targeting. The banks operational target was the growth rate in reserve money, with specific targets set on the supply side components; net domestic assets and net foreign assets of the Reserve Bank. 1 Mainly derived from the Reserve Bank of Malawi Report and Accounts for the year ended 31st December

5 2.0 Mission Statement 3.0 Strategy for Regulation and Supervision The Pension and Insurance Supervision (PISU) Department of Reserve Bank of Malawi (RBM) has an overall 3.1 LEGAL FRAMEWORK to prepare and timely submit statutory returns to the Registrar of Financial Institutions on a quarterly basis mission of ensuring the existence of a fair, safe, sound and stable pension and insurance sector in Malawi in line The Registrar primarily derives authority to regulate and audited financial statements annually as required with international supervisory standards. and supervise the pension and insurance sectors from by the Financial Services Act, The returns the Financial Services Act (FSA), the Insurance Act aid in surveillance of the reporting institutions and In pursuance of the mission statement outlined above, the department will perform its work with professionalism, and the Pension Act. The three principal legislations the industry as a whole in order to ensure safety integrity, impartiality, and in a friendly and cooperative manner but without compromising its authority or mandate. also provide the Registrar with powers to develop and and financial soundness of the institutions as well issue subsidiary laws (directives) which guide market as the stability of the industry. Offsite surveillance The department has the following core strategic objectives representing essential elements of the mission players on specific areas of operations in the market. involves the analysis of statutory returns, assessment statement: a) ensuring the existence of all inclusive and regulated pension and insurance industries; The Governor of the Reserve Bank of Malawi is appointed Registrar and is responsible for the regulation and supervision of financial institutions of compliance with laws and regulations, and follow up on on-site examination recommendations. The effectiveness of off-site surveillance largely depends b) developing the pension and insurance sectors and enhancing stakeholder confidence in the pension including pension and insurance entities. Within the on the quality and timely submission of statutory RBM, it is the Pension and Insurance Supervision returns by the institutions. Timely submission of these and insurance services in order to broaden and deepen the financial sector market; department that is charged with the responsibility of returns assists the regulator to quickly identify lapses c) safeguarding insurance policyholders, pension members, beneficiaries and the general public from supervising and regulating the pension and insurance and weaknesses in the operations of the institutions business. and to effect appropriate corrective action. undue loss; 3.2 LICENSING AND REGISTRATION On-site Examinations d) fostering a competitive, cost effective environment in the pension and insurance sectors through provision of prudential directives and regulations; All participants in the pension and insurance industry are required to be licensed or registered by the Registrar. Participants submit applications to the Registrar On-site examinations are conducted at the institution s premises and typically cover an assessment of significant areas and key financial and nonfinancial e) providing quality, professional supervisory and regulatory service. and licences are issued and renewed for a period as specified in the licence, subject to compliance with statutory and regulatory requirements. Applications are rejected where applicants fail to meet the minimum requirements or conditions given by the Registrar. 3.3 ONGOING SUPERVISION risks inherent to the business. An on-site examination programme generally consists of meeting with senior management and key staff and review of relevant documentation. An on-site examination report is prepared and provided to the institution with appropriate recommendations for implementation. On-going supervision of the pension and insurance 3.4 EXIT ADMINISTRATION industries is a key function of the Pension and Insurance Supervision Department. This role includes monitoring the performance and conduct of licensed pension and insurance market players through off-site surveillance and on-site examinations. The FSA and Insurance Act give powers to the Registrar to suspend or revoke licences of pension and insurance market players on several grounds, including failure to comply with laws and regulations, and if the continued licensing of the entity is deemed Offsite surveillance contrary to the interest of the public or policyholders in Malawi. Further, the Registrar has powers to As a continuous licence operating requirement, all licensed pension and insurance entities are required approve or petition the Courts for the winding up of prudentially regulated financial institutions. 8 9

6 4.0 Regulatory and Supervisory Activities INSURANCE Licensing Entry Control In 2011, no licence was granted to a new insurance company. However, two insurance brokers, namely: Express Insurance Brokers Limited and GG Insurance Brokers Limited were registered into the market after fulfilling entry requirements. Further, two insurance loss adjustors/assessors and one insurance agent, namely: Professional Loss Adjustor and JBK Loss Assessor and Henliz Insurance Agency, were issued with new licences. During the year, the Registrar renewed licences for insurance entities as follows: four (4) life insurers; seven (7) general insurers; one (1) reinsurer; ten (10) insurance brokers; twenty one (21) insurance agents; five (5) agents for brokers 2 and seventeen (17) loss adjustors/assessors. The following insurance entities however did not submit licence renewals: Star Lion Funeral Services; Del Insurance Agency; Enterprise Management Insurance Agency; Quality Insurance Agency; ND Insurance Assessors and Standard Consults Loss Assessors Exit Administration In August 2011, the Registrar invoked Section 68 of the Financial Services Act and placed Citizen Insurance Company Limited under statutory management due to its failure to comply with regulatory requirements. Upon conclusion of the exercise, the Registrar petitioned the High Court to wind up the Company Development of Policies and Regulations During the year under review, the following insurance directives were issued and published in the Malawi Government Gazette: Insurance (Suitability of Persons Associated with Ownership and Management of Insurance Companies and Insurance Brokers) Directive 2011 Insurance (Risk Management Framework for Insurance Companies) Directive 2011 Insurance (Minimum Capital and Solvency Requirements for General Insurers) Directive These are typically banks licensed to carry out banc assurance activities Insurance (Minimum Corporate Governance Requirements for Insurance Companies) Directive 2011 Insurance (Premium Payments to General Insurance Companies) Directive, PENSION Enactment of the Pension Act The Pension Bill was enacted by Parliament in the first quarter of However, the new law, the Pension Act (Act No. 6 of 2011) only came in force on 1st June The Act makes provision for mandatory pension in Malawi and matters relating to the supervision and regulation of pension funds and umbrella funds Pension Public Awareness Initiatives Subsequent to the promulgation of the Pension Act, the Department embarked on a pension law sensitization campaign in Blantyre, Lilongwe and Mzuzu to raise awareness on the Pension Act. This followed numerous queries with regard to implementation of the Pension Act. The campaign therefore involved consumer awareness workshops which targeted workers, human resource personnel, trustees, and the public in general. A total of 6 workshops were conducted with attendance averaging at 200 participants per workshop. By December 2011, the Department attended to over 200 enquiries which were received either through or surface mail. Even more queries were attended to through telephone on an on-going basis. The Department also endeavoured to provide guidance on case by case basis depending on the need of the organisation or employees. As such, several specific meetings, presentations and workshop facilitations were held to employers and their employees as well as various parties

7 5.0 Departmental Developments, Activities and Projects 5.1 STAFF RECRUITMENT AND DEVELOPMENT The Department recruited seven officers during the year to cover both pension and insurance supervision. The recruitment brought the total number of employees in the department to 18. In 2011, staff from the department attended various short term trainings both locally and internationally. The trainings were particularly on supervision and regulation of financial institutions, risk management, life assurance and micro-insurance. The Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) conducted in-country training on Supervision of Non-Bank Financial Institutions which took place at the National Bank of Malawi Training Centre in Blantyre. The program focused on new examiners at the Reserve Bank of Malawi involved in supervision of non-bank financial institutions. Furthermore, one member of staff from the Department was granted a scholarship to pursue a doctorate degree in the United Kingdom. The Department also participated in international conferences organized by the Committee of Insurance, Securities and Non-Bank Financial Authorities (CISNA), International Association of Insurance Supervisors (IAIS) and International Association of Pension Supervisors (IOPS). 5.2 STRESS TESTING In October 2011, the Department embarked on a Technical Co-oporation Project on Stress Testing of Insurance Companies and Pension Funds. The program was facilitated by IMF Stress Testing experts from the Norges Bank and involved analysing data requirements and designing stress test models for insurance companies. Following the exercise, a model to stress test the assets of insurance companies in Malawi was developed. Due to limitations in the data collected from insurance companies, it was not possible to develop a model to stress test the liabilities. 6.0 Performance of the Insurance Sector of K1.5 Billion. This followed the introduction of the Minimum Capital and Solvency Directive for General Insurers which requires the writing off of such debts. Premium receivables therefore dropped to K4.5 billion from K6 billion reported in 2010 (i.e percent decrease). On the other hand, the drop in liabilities is largely due to a decrease in reinsurance payables which fell by 38 percent to K1.8 billion from K1.1 billion in Total shareholders funds also declined by 10.8 percent to K3.2 billion from K3.6 billion reported in With such challenging conditions, the general insurance industry struggled to meet the minimum regulatory solvency requirements with solvency averaging 15.3 percent, which was lower than 20.6 reported in The Registrar is committed to 6.1 General Insurance taking action against companies that do not meet Overall Performance solvency requirements and as such, the Registrar engaged concerned individual market players to take The general insurance industry made a loss of K18.0 appropriate action to regularise their positions. million in 2011 compared to a profit of K901.8 million in This generally poor performance Premiums by the industry can mostly be attributed to a sharp Gross premiums rise in claims incurred, the increase in premium debt Gross premium for the sector rose by 10.9 percent write-offs and provisions made during the year. Total to K9.7 billion compared to K8.8 billion reported in assets for general insurers dropped by 7.9 percent to The growth rates for 2009 and 2010 were 12.9 K10.6 billion (2010: K11.5 billion) whilst liabilities percent and 22.8 percent respectively. Nonetheless, also dropped to K7.4 billion from K7.9 billion in over the four years, premiums have steadily grown as The decrease in assets for the sector was likely illustrated by Chart 1 below: as a result of significant write-offs of premium receivables outstanding or uncollected Chart 1: Gross Premium for more than 180 days to the tune K'million 10,000 8,000 6,000 4,000 2, Year 2011 All classes of business recorded premium growth in Personal accident business grew by 17 percent, fire business rose by 14.2 percent, motor business went up by 10.9 percent while the rest of the classes of business combined grew by 1.4 percent. Motor insurance continued to dominate general insurance business as it accounted for 59.7 percent of total gross premium. Charts 2 and 3 below provide the composition of gross premium by class of business over the four years: 12 13

8 Net Premiums General insurance companies retained 74.3 percent or K7.2 billion of the K9.7 billion gross premium income written during The industry has maintained almost a constant retention level over the last four years. Motor insurance had the highest retention of all classes as depicted by Charts 5 and 6 below. In terms of market share, NICO General Insurance Company Limited recorded the largest share of premiums in 2011 while Reunion Insurance Company Limited had the least share of the market. NICO General Insurance Company had 36.3 percent of total gross premium written while Reunion generated only 3.1 percent of the premiums. Chart 4 below provides market share details for general insurance companies in 2011: 14 15

9 6.1.3 Reinsurance The industry ceded 25.7 percent or K2.5 billion of the business generated in 2011 to reinsurance companies. This is the lowest cession made by the market over the past four years. Fire insurance was the most reinsured class of business, accounting for 39.6 percent of the total reinsurance premium ceded during the year (see Chart 7). Chart 8 shows the distribution of reinsurance premium over the last four years. Out of the K2.5 billion ceded to reinsurers, 41.6 percent or K1 billion was ceded locally to Malawi Re, 10.6 percent or K266 million was shared among local insurers and the remaining 48.7 percent or K1.2 billion was ceded to foreign reinsurers, who also got K237.9 million or 22.9 percent of Malawi Re s premium through retrocession arrangements Claims Gross Claims Incurred The industry claims experience shows that there were more claims incurred in 2011 than any of the previous three years (see Chart 13). Gross claims incurred totalled K5.3 billion, representing 37 percent increase from K3.9 billion recorded in Previously, gross claims grew by 14.2 percent and 3.9 percent in 2009 and 2010 respectively. The increase in gross claims is largely attributable Chart 9: Gross Claims Incurred by Class of Business to escalating motor claims. Motor in 2011 insurance claims accounted for 81 percent or K4.3 billion of gross claims 5.7% Fire incurred by the industry in 2011 (see 81.0% Motor Chart 9). Charts 9 and 10 illustrate 5.5% Personal Accident the distribution of claims incurred. In Miscellaneous 2008, fire insurance business had the 7.8% highest amount of claims incurred due to the huge fire loss that occurred at the then Celtel Malawi

10 Chart 10: Gross Claims Insurred by Class of Business K'million 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Year Fire Motor Personal Accident Miscellaneous Net Claims Incurred Net claims incurred by the industry amounted to K4.5 billion this year, which is 40 percent more than K3.2 billion incurred in The industry made recoveries on reinsurance worth K842.1 million (2010: K661.9 million). Although the industry recovered more claims this year than in 2010, the trend on claim recoveries generally appears to be declining as depicted in Chart 12 below. This indicates that the market is gradually increasing its business retention and therefore has to absorb a larger share of the claims incurred. This is reflective of the increased retention as clearly shown in Chart 11 below, especially for motor business which shows an escalation of net claims incurred. The industry claims ratio jumped to 63.9 percent in 2011 from 51.8 percent in Motor insurance business reported the highest claims ratio of 75.5 percent while fire insurance had the lowest at 27.5 percent

11 Claims Paid and Outstanding claims During the year, the industry paid claims totalling K4.6 billion, which is almost 20 percent more than K3.8 billion paid in The industry s outstanding claims liability stood at K2.6 billion, up from K2.1 billion in There is a steady rise in outstanding claims liability as shown in Chart 13 below. Such a build up of claims liability does not reflect well on the industry s ability and willingness to pay claims. the other hand, all classes of business remained profitable as indicated in Table 15 in the Appendix Investment and Other Income Net investment income (investment income less investment expenses) contributed K621.9 million towards industry profitability in Although this represents an increase of 19.7 percent from last year s contribution, the figure is too small to have a meaningful impact on the performance of the industry. Chart 14 below summarises underwriting and operating results for the industry over the last four years Underwriting and Operating Results Net Profit Pre-tax profit for the industry dropped significantly to K208.3 million compared to K1.2 billion made in After accounting for taxation expense of K226.3 million, the industry made a loss of K18.0 million.. This is a huge decline in profit for the industry compared to K901.8 million reported in This poor industry performance is attributed to two factors, namely, reduced underwriting surplus due to increased claims and a substantial rise in management expenses incurred during the year. Management expenses increased by 25.8 percent to K2.4 billion from K1.9 billion in 2010, largely due to increase in provisions and premium debt write-offs. Consequently, the industry management ratio went up to 34 percent from 30.8 percent in The industry s combined ratio deteriorated to percent from 97.4 percent in 2010, obviously as a result of high claims and expense ratios Underwriting Results The major factor that affected the industry s bottomline is clearly a slow down in underwriting results. The industry reported an underwriting surplus of K2 billion in 2011, which is lower than K2.6 billion recorded in Consequently, the industry underwriting ratio dropped to 29 percent from 41.3 percent over the same period. A poor claims experience, particularly in motor business is the main cause for this underperformance. On Balance Sheet Assets Consolidated industry assets shrunk by 7.9 percent to K10.6 billion from K11.5 billion in The reduction in industry assets is attributed to a decrease in insurance receivables, which went down by 25.5 percent to K4.5 billion from K6 billion in 2010, largely as a result of premium debt write offs. The write offs relate to premiums outstanding for more than 180 days as required by the Registrar s directive on minimum capital and solvency. However, insurance receivables remained the largest asset on the consolidated balance sheet of general insurance companies as it constituted 42.1 percent of total assets (2010: 52.1 percent) (see Chart 15). The accumulation of insurance receivables however negatively impacts the liquidity position of the industry. Such receivables deprive insurers the opportunity to invest in more profitable avenues for future settlement of claims

12 Chart 16: Composition of Assets for General Insurers 12,000.0 K'million 10, , , , ,000.0 Other Assets Cash and Cash Equivalents Insurance Receivables Loans & Debentures Fixed Deposits Equity Investment Government & Other Securities Investment Property Fixed Assets - Year Chart 17 below shows the distribution of industry assets among the seven players trading in the market. Government securities dropped by 58.5 percent to K558 million (2010: K1.3 billion). However, fixed deposits increased by 61.5 percent to K1.8 billion (2010: K959.3 million). There was also a notable interest in equity investment as the portfolio increased to K1.3 billion in 2011 from K959.3 million in Due to the nature of their business and the unpredictable manner of claims, general insurance companies are expected to maintain fair amount of liquid assets to ensure smooth and quick payment of legitimate claims. Chart 16 below shows that the composition of assets for general insurers is not well structured to support short term insurance

13 Liabilities Total industry liabilities reduced by 6.6 percent to K7.4 billion from K7.9 billion in This reduction was largely driven by the decrease in reinsurance payables, which went down by 38 percent to K1.1 billion from K1.8 billion in Tax liability and bank overdrafts also notably declined during the year under review. Technical reserves (unearned premium reserve and claims liability) accounted for 65.2 percent (2010: 62.3 percent) of total industry liabilities. Reinsurance payables in 2011 constituted 15.2 percent of total liabilities. This is quite high and an indication of lack of proper servicing of reinsurance agreements by general insurance companies. The situation was exacerbated by the unavailability of foreign exchange during the year. Chart 18 below and Table 16 in the Appendix provide details about the composition of industry liabilities over the past four years. 6.2 LIFE INSURANCE Premium Growth The life insurance sector registered premium growth albeit on a small scale in Premiums grew by 11.9 percent to K2.9 billion from K2.6 billion recorded in The growth rate is lower than 43.6 percent recorded in As a result, market penetration still remained very low with gross life insurance premiums representing 0.2 percent of Gross Domestic Product (GDP) as at year end Market share (Premium) NICO Life had the largest market share based on gross life premiums written in 2011 with 55.9 percent of the premium written followed by Old Mutual with 27.1 percent. Vanguard Life had 10.9 percent of the market share. Smile Life had the least share of the market at 6.8 percent. Although Smile Life recorded the least market share, the company continues to steadily grow its market share. Refer to Chart 20 below for an illustration of the market share Shareholder s Fund Total shareholders funds declined by 10.8 percent to K3.2 billion compared to K3.6 billion recorded in 2010, largely due to a drop in revaluation reserves. Share revaluation reserves dropped to K91.6 million in 2011 compared to K578.3 million reported in

14 The number of individual policies terminated by surrender increased to 579 (2010:469) representing lost annual premiums of K6.85 million, down from K11.2 million in 2010 despite the increase in the number of policies. In contrast, group business policy surrenders decreased to 3 (2010: 9) representing annual premiums of K7.24 million, down from K28.10 million registered for the nine (9) policies terminated in Hence the combined surrender value in both categories (individual and life policies) in terms of annual premiums lost decreased by K25.2 million to K14.09 million (2010: K 39.3 million) Reinsurance Cessions The life insurance industry retained almost the same level of risk as in Retention ratio marginally decreased to 90.9 percent in 2011 as compared to 91.5 percent in the previous year. In absolute terms, premiums ceded slightly increased to K266.6 million from K223.2 million recorded in Underwriting Experience The life insurance industry underwrote 7,487 new individual life policies during the year with a total of K366.1 million in annual premiums as compared to 7,574 individual life policies with annual premium of K447.7 million underwritten in During the same period, group life insurance policies rose to 371 from 67 reported in Consequently annual premium increased to K1, million from K343.1 million representing 302 percent. The rise in group life insurance policies in 2011 can be attributed to the mandatory requirement by the newly promulgated Pension Act which requires every employer to provide life insurance cover for every employee under his employment. Chart 21 below depicts the trend in life insurance premiums. The industry recorded 1,641 policy terminations by lapse (2010: 1,066) out of which 1,639 terminations were in the individual business category while two (2) were in the group life category. The value in terms of annual premiums lost jumped to K39.41 million (2010: K8.24 million). See tables 21 and 22 in the appendix. During the year under review, a total of 2,218 individual life insurance policies (2010: 1,533) and 5 group life policies (2010: 11) were terminated either through surrender or by lapse 3. 3 A policy is considered to have lapsed when it is forfeited by the policyholder without receiving any payment from the insurer in respect of the premiums already paid to the company. It is different from a policy surrender, which the company treats as a claim by the policyholder for which it pays a surrender value. Although there may be unavoidable reasons for lapses in some cases, a lapse usually means that poor quality business was written, which should have been avoided or minimised at the onset

15 6.2.5 Balance Sheet Assets The life insurance sector registered 12.5 percent growth in total assets during the year. As of December 2011, total assets of life insurance companies 4 were valued at K68.8 billion up from K61.1 billion in 2010 (see Chart 24). This growth was influenced by increased investment in real estate, shares and fixed deposits. However, there was a slight decrease in government securities. In terms of asset distribution by company, Old Mutual recorded a decline in total assets from 61.4 percent in 2010 to 57.0 percent. NICO Life on the other hand, recorded a growth of assets from 37.3 percent in 2010 to 41.5 percent. The contributions for Vanguard and Smile Life to assets of the industry remained relatively unchanged from the preceding year (see Chart 26 below and Table 23 in appendix). Investment assets constituted 87.6 percent of total assets with about 53.4 percent specifically in equity securities. Loans yielded the highest returns for the life insurers with an average return of 15.7 percent down from percent in Shares had an average return of 9.2 percent again down from percent in Overall, the industry experienced a decrease in investment returns from 13.3 percent in 2010 to 8.5 percent in 2011 (see Chart 25) Liabilities Total liabilities for the life insurance sector grew by 0.6 percent to K61.6 billion from K61.2 billion in This was largely due to an increase in policyholder funds liabilities which accounted for 95.1 percent (2010: 87.9 percent) of the total liabilities representing K58.3 billion (2010: K53.8 billion). 4 Assets of life insurance companies include pension assets being managed by life insurance companies

16 Shareholder s Fund Total shareholder funds for the sector grew to K7.25 billion in 2011 from K5.57 billion in The increase in capital can be attributed to increased retained earnings for the industry following a profitable year. The industry registered aggregate profits after tax of K2.25 billion out of which K0.57 billion were paid out as dividends. 6.3 INSURANCE BROKERS In the year under review, premiums handled by brokers rose by 20.5 percent to K8.509 billion from K7.063 billion registered in The figure represents 63.3 percent of total premiums underwritten in the insurance industry in A high proportion (85.5 percent) of general insurance business was generated through brokers as compared to 5.0 percent in the life insurance industry. Consolidated total assets for the broking industry grew by 8 percent from K3.0 billion in 2010 to K3.3 billion. The growth is on account of new brokers that were licensed in the year under review as well as increases in assets base of City State, Guardian and Trinity insurance brokers. Chart 27 below illustrates the market share of insurance brokers based on assets and insurance premiums handled. 6.4 PERFORMANCE OF THE PENSION SECTOR Pension Funds and Pension Members The pension sector registered remarkable growth in on the back of the promulgation of the Pension Act, which came in force on 1st June Pension funds grew by 123 percent from 399 pension funds recorded in 2010 to 890 in the year under review. The Act mandates every employer operating in Malawi to set up a pension scheme. Pension fund membership also grew 38.9 percent from 73, 837 members recorded in 2010 to 102, 505 members in the year under review. The number of pension fund members however does not include the Civil Service Pension Scheme which has the highest number of employees. In the year under review, NICO Life recorded the highest number of pension members under their administration despite recording lower number of pension funds as compared to Old Mutual. NICO administered 302 pension funds with 44,558 members in 2011 as compared to 401 pension funds with 26,343 members administered by Old Mutual. Chart 28 and 29 illustrates the movements Pension Fund Assets and Market share The Assets of the pension sector grew to K67.7 billion in 2011 from K59.5 billion in 2010, representing a steady growth of 13.7 percent. Assets of pension funds invested in the guaranteed funds offered by life insurers registered a 7.9 percent growth to K40.7 billion from K37.7 billion. Segregated funds 6 assets on the other hand grew to K27 billion in 2011 from K21.8 billion in This represents a growth of 23.7 percent. In terms of market share, NICO Life recorded the largest share of the market based on assets under management, which amounted to K17.2 billion. The brokers increased their asset portfolios mostly through acquisition of tangible assets such as land, office equipment and vehicles. Meanwhile, industry brokerage commission grew by 14.9 percent from K million in the preceding year to K1, million. Further, the industry registered a collective profit of K million in the year under review, representing a 51.8 percent increase on 2010 industry profit of K million. In terms of outstanding premiums to insurers, brokers had K2.4 billion as at 31 December, 2011, against K1.8 billion registered in Out of the reported amounts, K1.5 billion and K1.0 billion were premiums overdue for more than 60 days in 2011 and 2010, respectively. 5 Following the promulgation of the Pension Act, the Reserve Bank of Malawi through the Pension and Insurance Supervision Department, is currently in the process of setting up a supervisory framework which will enable the Bank to issue Directives and other instruments used in supervision. The instruments will also enable the Bank to collect information from the industry in a standardised format which is currently a challenge. For this period, effort was made to collect relevant information from various stakeholders and pension administrators. However, it still remains a challenge as the information collected is not standardised. Most stakeholders had challenges in submitting the information in the desired format. The analysis has therefore been prepared amidst these challenges to the effect that the data presented may not reflect the exact position of the pension sector. 6 A segregated fund is a fund with own investment policy. Its assets are segregated from the assets of pension funds and other funds that are collectively invested 30 31

17 6.4.4 Administration Fees In terms of administration fees, pension administrators fees received increased marginally by 2.3 percent in the year under review. This is as a result of the general reductions in administration fees which the industry has effected in anticipation of possible economies of scale due to the sharp increase in pension fund membership. It is hoped that competition in the market will eventually start to benefit members of pension funds. Segregated funds on the other hand recorded 43.1 percent increase in fees paid to K157.6 million in 2011 from K110.1 million in Pension Contributions During the year under review, pension contributions increased sharply to K8.6 billion from K5.8 billion in This represents a 47.3 percent increase. NICO Life recorded the highest with K3.4 billion. The marked increase in pension contributions may again be attributed to the enforcement of the Pension Act. There was also a substantial growth in contributions for segregated schemes. They increased by 64.7 percent to K2.4 billion in 2011 from K1.5 billion in The increase may be credited to the new pension members who were previously on gratuity contracts as well as the enforcement of minimum contribution rates as prescribed by the Pension Act

18 7.0 APPENDICES 7.1 LIST OF TABLES AND CHARTS General Insurance Table 1: Gross Premium Written Fire , , ,537.5 Motor 3, , , ,811.5 Personal Accident , ,233.0 Miscellaneous 1, , , ,151.4 Total 6, , , , Table 2: Gross Premiums Vs Net Premiums Gross Premium 6, , , ,733.4 Reinsurance Premium 1, , , ,497.7 Net Premium 4, , , ,235.7 Retention Ratio 72.7% 71.3% 73.1% 74.3% Table 3: Reinsurance Premium Ceded by Class of Business Fire Motor Personal Accident Miscellaneous Total 1, , , ,497.7 Table 4: Net Premium Written by Class of Business Fire Motor 3, , , ,244.7 Personal Accident Miscellaneous Total 4, , , ,253.2 Table 5: Retention Ratio by Class of Business Fire 5.9% 7.0% 5.6% 7.7% Motor 75.7% 74.2% 73.6% 72.3% Personal Accident 3.7% 3.9% 5.3% 12.4% Miscellaneous 14.7% 14.8% 15.4% 7.6% Total 100.0% 100.0% 100.0% 100.0% Table 6: Earned Premium by Class of Business Fire Motor 3, , , ,990.9 Personal Accident Miscellaneous , Total 4, , , ,050.4 Table 7: Net Claims Incurred by Class of Business Fire Motor 1, , , ,767.4 Personal Accident Miscellaneous Total 1, , , ,503.9 Table 8: Claims Ratio by Class of Business Fire 29.5% 35.5% 40.4% 27.5% Motor 45.0% 59.6% 57.8% 75.5% Personal Accident 31.3% 43.8% 33.1% 36.0% Miscellaneous 25.9% 41.3% 35.2% 43.8% Total 40.6% 54.4% 51.8% 63.9% 34 35

19 Table 9: Gross Claims Incurred by Class of Business Fire 1, Motor 1, , , ,328.7 Personal Accident Miscellaneous Total 3, , , ,345.9 Table10: Outstanding Claims by Class of Business Fire Motor , , ,869.3 Personal Accident Miscellaneous Total 1, , , ,636.5 Table 11: Claims Experience Gross Claims Incurred 3, , , ,345.9 Recoveries on Reinsurance 1, Claims Paid 2, , , ,609.9 Claims Ratio 40.6% 54.4% 51.8% 63.9% Table 14: Market Share for General Insurers in 2011 Name of Insurer Gross Premium Total Assets % % Charter Insurance Co % % General Alliance Insurance Co 1, % 1, % NICO General Insurance Co 3, % 4, % Prime Insurance Co 1, % % REAL Insurance Co 1, % 1, % Reunion Insurance Co % % United General Insurance Co 1, % 1, % Total 9, % 10, % Table 15: Underwriting Results by Class of Business Fire Motor , , Personal Accident Miscellaneous Total 1, , , ,043.2 Table 12: Operating Results Underwriting Results 1, , , ,008.6 Net Investment Income Management Expenses 1, , , ,422.2 Pre-tax Profit , Taxation Profit for the year (18.0) Table 13: Underwriting and Operating Ratios Underwriting Ratio 40.1% 38.1% 41.3% 29.0% Combined Ratio 103.3% 101.1% 97.4% 112.7% Management Ratio 33.8% 32.3% 30.8% 34.0% 36 37

20 Table 16: Extract of the Consolidated Statement of Financial Position Assets Fixed Assets Investment Property Government & Other Securities , Equity Investment 1, , ,303.0 Fixed Deposits 1, , , ,820.1 Loans & Debentures Insurance Receivables 3, , , ,456.8 Cash and Cash Equivalents Other Assets Total Assets 8, , , ,580.1 Liabilities Unearned Premiums 2, , , ,634.9 Outstanding Claims 1, , , ,172.5 Reinsurance Payables 1, , , ,122.4 Long Term Liability Provision for Taxation Bank Overdraft Other Liabilities ,275.5 Total Liabilities 6, , , ,377.0 Equity/Shareholders Funds 2, , , , Life Insurance Table 18: Assets of Life Insurance Companies Fixed Assets 1, , , Real Estate 4, , , Securities 8, , , Fixed Deposits 11, , , Shares 36, , , Debtors 1, , , Cash and Bank Balances , Other Assets 3, Total Assets 68, , , Table 19: Premium Distribution Life Insurance Premiums 2, , , Premiums Ceded Net Premium 2, , , Retention Ratio 90.9% 91.5% 92.8% Premium Ceded Ratio 9.1% 8.5% 7.2% Table 17: Solvency Ratio Solvency Ratio 17.2% 28.2% 20.6% 15.3% Table 20: Policies Effected during the Year Individual Group No. of policies 7,487 7,547 5, Sums Insured 3, , , , , Annual Premiums , Table 21: Policies Terminated by Surrender Individual Group No. of policies Sums Insured , Annual Premiums

21 Table 22: Policies Terminated by Lapse Individual Group No. Of Policies 1, Sums Insured Annual Premiums Insurance Broking Table 23: Market Share for Life Insurers Gross Premium Total Assets Old Mutual % 4, % 39, % 37, % NICO Life 1, % 3, % 28, % 22, % Vanguard % % % % Smile Life % % % % Total 2, % 7, % 68, % 61, % Table 24: Performance overview Total Premiums 8, , , Commission Earned 1, Total Expenses Profit for the year Total Assets 3, , , Table 25: Distribution of Brokers Premiums General Insurance Fire Motor 4, , , Accidents Miscellaneous 2, , , Other Total General 8, , , Life insurance Total Premium 8, , , Table 26: Broker s Premium as percentage of Total Premium Premium Handed by Brokers % General Insurance 8, , Life Insurance Total Premium handled by brokers 8, , Insurance Industry Premium General insurance Premium 9, , Life Insurance Premium 3, , Total Insurance Industry Premium 13, , % of life premiums handled by brokers 5.02% 5.2% % of general premium handled by brokers 85.51% 76.6% % total industry premium handled by brokers 63.31% 60.5% Table 27 Market Share for Insurance Brokers in 2011 Name of Broker Premiums Transacted Assets % % Aon 3, Alexander Forbes 1, Kingfisher Associates 1, Hubertus Clausius Rhino Insurance Brokers Guardian Insurance Brokers Eagle Insurance Brokers City State Swift Insurance Brokers Express GG Trinity TOTAL 8, , Table 28: Outstanding Premium due to insurers Total Outstanding Premium 2, , ,887.8 Outstanding Premium > 60 days 1, , ,180.3 Outstanding Premium > 60 days as a Percentage of Total Outstanding Premium 64.0% 57.9% 62.5% Total Outstanding Premium as a Percentage of Total Premium 27.8% 30.4% 27.2% 40 41

22 7.1.4 Pension Table 29: Total Pension Funds Name of Administrator NICO Life Old Mutual Life Vanguard Life INDETrust Segregated Funds Other Total Table 32: Pension Contributions Old Mutual Life 2, , ,191.1 NICO Life 3, , ,048.8 Vanguard Life INDETrust Segregated Funds 2, , ,776.5 Other Total 8, , ,440.1 Table 30: Pension Members Old Mutual Life 26,343 18,012 15,872 NICO Life 44,558 27,352 26,916 Vanguard Life INDETrust 15,716 15,067 14,314 Segregated Funds 13,311 12,279 12,515 Other Total 102,505 73,837 70,790 Table 33: Administration Fees Old Mutual Life NICO Life Vanguard Life INDETrust Other Total Segregated Funds Table 31: Pension Fund assets Old Mutual Life 16, , ,126.5 NICO Life 17, , ,160.5 Vanguard Life INDETrust 6, , ,434.5 Segregated Funds 26, , ,120.9 Other Total 67, , ,

23 7.2 LICENSED MARKET PLAYERS IN 2011 General Insurance Companies 1. Charter Insurance Co. Ltd, P.O. Box 354. Tel General Alliance Insurance Co. Ltd, P.O. Box 1811, Blantyre. Tel NICO General Insurance Co Ltd, P.O. Box 2592, Blantyre. Tel Prime Insurance Co Ltd, P.O. Box 30280, Lilongwe 3. Tel REAL Insurance Co of Mw Ltd, P.O. Box 442, Blantyre. Tel Reunion Insurance Co Ltd, Private Bag 242, Lilongwe 3. Tel United General Insurance Co Ltd, P.O. Box 383, Blantyre. Tel Life Insurance Companies 1. NICO Life Insurance Co Ltd, P.O. Box 3044, Blantyre. Tel Old Mutual Life Assurance Co Mw Ltd, P.O. Box 393, Blantyre. Tel Smile Life Assurance Co Ltd, P.O. Box 1374, Blantyre. Tel Vanguard Life Assurance Co Ltd, P.O. Box 1625, Blantyre. Tel Reinsurance Companies 1. Malawi Reinsurance Co Ltd, P/Bag157, Blantyre. Tel Insurance Brokers 1. Alexander Forbes Malawi Ltd, P.O. Box 2913, Blantyre. Tel AON Malawi Ltd, P.O. Box 381, Blantyre. Tel City State International, P.O. Box 2010, Blantyre. Tel Eagle Insurance Brokers, P.O. Box 2814, Blantyre. Tel Express insurance Brokers, P.O Box 1452, Lilongwe. Tel Guardian Insurance Services, P.O. Box 635, Lilongwe. Tel Hubertus Clausius Mw Ltd, P/Bag 294, Blantyre. Tel Kingfisher Associates (Ptv) Ltd, P/Bag 154, Blantyre. Tel Rhino Insurance Broking & Consulting, P.O. Box 31870, Blantyre 3.Tel Swift Insurance Brokers & Consultants, P.O. Box 1388, Blantyre. Tel Trinity Insurance Brokers Ltd P.O. Box 30362, Lilongwe. Tel Agents for Brokers 1. INDETrust Ltd, P.O. Box 1674, Blantyre. Tel National Bank of Malawi, P.O. Box 945, Blantyre. Tel NBS Bank Limited, P.O. Box 32251, Blantyre. Tel Opportunity International Bank of Malawi, P.O. Box A71, Lilongwe.Tel Standard Bank Ltd, P.O. Box 1111, Blantyre. Tel General Insurance Agents 1. Beic and Partners Insurance Agency, P.O. Box 5463, Limbe. Tel Blantyre Insurance Agency, P.O. Box 1349, Blantyre. Tel Breakthrough insurance Agency, P.O. Box 115, Mwanza. Tel Central Insurance Agency, P.O. Box 842, Lilongwe. Tel CHC Insurance Agency, P.O. Box X210,Lilongwe.Tel Chisangalalo Insurance Agency, P/ Bag 21, Kasungu. Tel Crown Insurance Agency, P.O. Box 51865, Limbe. Tel DH Gelu Insurance Agency, P.O. Box 22, Lilongwe. Tel Eastern Insurance Agency, P.O. Box 875, Lilongwe. Tel Equatorial Insurance Agency, P.O. Box 30791, Blantyre 3. Tel Fast Insurance Agency, P.O. Box 31142, Blantyre 3. Tel Hamax Insurance Agency, P.O. Box 31315,Lilongwe 3.Tel Henliz Insurance Agency, P.O. Box 647 Lilongwe. Tel Impact Insurance Agency, P.O. Box 497, Blantyre Tel Laudo Insurance Agency, P.O. Box 1516, Lilongwe. Tel Mcfreed Insurance Agency, P.O. Box 60670, Blantyre 6. Tel Pagat United Insurance Agency, P.O. Box 51948, Limbe. Tel Progressive Insurance Agency, P.O. Box 93, Mwanza. Tel Ranila Insurance Agency, P.O. Box 330, Dedza. Tel Resilient Insurance Agency, P.O. Box B468, Lilongwe Rossal Insurance Agency, P.O. Box 380, Blantyre. Tel Senate Insurance Agency, P.O. Box 51326, Limbe. Tel Insurance Loss Assessors or Adjusters 1. Associated Insurance Loss Adjusters, P.O. Box 51483, Limbe. Tel Computer Maintenance Centre, P.O. Box 374,Blantyre,Tel Concorde Loss Adjusters, P.O. Box 431, Blantyre. Tel Dynamic Loss Adjusters, P.O. Box 30953, Lilongwe 3. Tel Fidelity Loss Assessors, P.O. Box 380,Blantyre.Tel First Insurance Assessors, P.O. Box 3188,Blantyre.Tel G M Insurance Assessors, P.O. Box 2515, Blantyre. Tel Harolds Group, P.O. Box 2976, Blantyre. Tel Internal Audit & Fraud Defence Centre, P.O. Box 32259, Blantyre 3. Tel MIC Associates, P.O. Box 30607, Lilongwe. Tel Multipal Loss Adjusters, P.O. Box 2169, Lilongwe. Tel PD Alliance, P.O. Box 1645, Blantyre. Tel PDCA Consultants, P.O. Box 3139, Blantyre. Tel Precision Aviation & General Engineering Services, P.O. Box 1614, Lilongwe. Tel P.T.L Assessors, P. O Box 2416, Blantyre. Tel Professional Loss Adjustor, P.O. Box 31422, Blantyre 3 Tel: / JBK Multiplan Loss Assessor, P.O. Box 30982, Chichiri Blantyre 3 Cel: Life Insurance Agents NICO Life Insurance Agents 1. Banda Kumbukani 2. Banda Ponsianuos 3. Bema Chifundo 4. Chapweteka Fortune 5. Chimphonda Charles 6. Chipangula Gertrude 7. Chipojola Moses 8. Chirambo Watson 9. Chirwa Archangel 10. Chithumba Dina 11. Chokoma Jimmy 12. Fundani Julia 13. Gadama Joanna 14. Ghambi Paul 15. Hau Ellen 16. Kadzombe Esther 17. Kalembera Peter 18. Kalinga Rodrick 19. Kambauwa Jacob 20. Kamwendo Legson 44 45

24 21. Kanaru Ellen 5. Chilapondwa Lizzie 44. Dalitso Wandawanda 71. Kuyokwa Amon 22. Kataika Grey 6. Chilombo Richard 45. Katrina Chirwa 72. Mafuleka Glory 23. Khamula Dennis 24. Kishindo Sungeni 25. Kumwenda Chrissy 26. Kunkhanda Florence 27. Makumba Nellie 28. Mandala Bernadetta 29. Manunda Mathews 30. Matabwa Goergina 31. Mazizwa James 32. Mhango Franklin 33. Moloko Kondwani 34. Mtunthama Frank 35. Mupara Misozi 36. Musukwa Moses 37. Mwale Marc 38. Mwenda Lenton 39. Mwiba Fyalimuka 40. Namkwenya Shanny 41. Ndakoiwa Petros 42. Ndamuwa Chimwemwe 43. Ndovi Leslie 44. Ng oma Anthony 45. Ngosi Sonia 46. Nkata John 47. Nkhoma Joshua 48. Nyirongo Tainess 49. Pete Alice 50. Phalula Chimwemwe 7. Chirwa Emily 8. Chirwa Victoria 9. Chisi Dingani 10. Chiwinga Victor 11. Chiyendawamba Fiskani 12. Galloway Annie 13. Gondwe Getrude 14. Kachikopa Esnarth 15. Kalea Wendy 16. Kambova Mirriam 17. Kamchowa Kelvin 18. Kamwana Elida 19. Kaunda Baza Dorothy 20. Liabunya Uzayani 21. Machonjo Stellia 22. Maiden Spencer 23. Maseko Daniel 24. Mdoka Noellah 25. Mlambala Khomba 26. Moyo Chimwemwe 27. Mphezu Joyce 28. Msuku Patricia 29. Mwalwanda Asa 30. Mwanja Johnas 31. Muluka Wadson 32. Pwele Esmie 33. Salamba Bobly 34. Semphani Emma Vanguard Life Insurance Agents 46. Changaya Hanna 47. Chikaonda Chikondi 48. Chilamwa Mirriam 49. Chimaliro Anastazia 50. Chimgwede Sydney 51. Chipululu Patrick 52. Chirembo Jimmy 53. Chirombo Mercy 54. Chirwa Martha 55. Chirwa Moses 56. Chiuta Pwere Elesia 57. Chizumila Joseph 58. Chowawa Philipina 59. Hara Lusungu 60. Juma Dick 61. Kachala Josephine 62. Kaiyatsa Fedric 63. Kaminjolo Patrick 64. Kamphonje Enock 65. Kamtchowa Mercy 66. Kandowe Archlove 67. Kawalewale Johannes 68. Khruza Paul 69. Khuoge Cecilia 70. Kumtaja Maxwel 73. Makhaza Beatrice 74. Maphwanya Stanley 75. Mdokhwe Andrew 76. Mkamanga Hebbie 77. Mlanga Blessings 78. Mlongoti Francis 79. Moyo Memory 80. Msekawanthu Alice 81. Msiska James 82. Mtambo Ansubiye Frank 83. Mtambo Augustine 84. Mughogho Edward 85. Mwambembe Robson 86. Mwanganya Boniface 87. Mwenelwanda Jimmy 88. Namakhwa Andrew 89. Namijingo Kenneth 90. Ngonga Atusaye 91. Ngulube Andrew 92. Nthengwe S. Thandiwe 93. Nyirenda Peter 94. Singano Chimwemwe 95. Sumani Norah 96. Tembo Michael 97. Waya Walter 98. Yona Solomon 51. Phiri Aaron 35. Halmiton Kadyelemwana 52. Sichinga Fredrick 36. Patricia Dolozi 53. Umali Aubrey 37. Blessings Mlanga 38. Josephine Kachala Old Mutual Life Insurance Agents 1. Banda Regina 2. Chagoma Lawrence 3. Chidyaonga Erica 4. Chikuse John 39. Stanley Maphwanya 40. Steve Mwafulirwa 41. Gerald Mwenelupembe 42. Gift Chimera 43. Stanley Chomboto 46 47

25 8.0 Departmental Structure of Pension and Insurance Supervision 48