LILONGWE-(MaraviPost)-Old Mutual Malawi customers are over the moon following the company’s 34.4% bonus declaration for 2022 Guaranteed Fund.

According to the company, this is 13% more than the average inflation rate.

The Guaranteed Fund has exceeded its targets and delivered on its promise to customers.

Managing Director for Old Mutual Life Asurance Company (OMLAC) Roy Punungwe told customers on Friday, April 28, 2023 in the capital Lilongwe that historical data shows that the annualized Fund bonuses for the 3, 5, and 10-year periods were above inflation, delivering a real return to clients over the medium to long term.

He added that the declaration of the bonus is as a result of good performance on investment by the company.

Punungwe is confident the company will continue declaring healthy bonuses in the coming years as it continues to invest in customer focused solutions.

He disclosed that the Guaranteed Fund’s performance was driven by strong performance across all asset classes, achieving 24% returns, which is above the average inflation rate of 21% experienced over the same period.

“Assets under management increased by 38% to close at MK539bn as of 31 December 2022 Contributions increased by 49% on the back of strong new business performance. Benefit payments increased by 38% attesting to the growth of the Fund.

“Old Mutual embarked on a project to refresh customer-facing material across allproducts, including the Guaranteed Fund, to align with best practices and improve Customer understanding of the products The business managed to implement FRS17,” he said.

Punungwe added, ” The standard is an important step in ensuring that financial statements are more reflective of the performance of insurance businesses.

“Guaranteed Fund has delivered strong returns and is committed to exceeding customer expectations. Old Mutual continues to invest in customer-focused solutions and is committed to providing investors with a diverse range of investment options”.

One of the pontential customers, Magret Chirombe, a Human Resources manager for Malawi Agricultural and Industrial Investment Corporation (MAIIC) expressed satisfactory over Old Mutual’s performance on guaranteed fund.

Chirombe hinted that their pension funds are in the safe hands.

“We are Vlvery grateful for old mutual’s performance for giving us better bonuses than last year.

“The company has instilled trust in us. Our bonus increase has surpassed expectations”, excited.

This comes in 2022, headline average inflation increased to 20% due to increases in both food and hon food costs.

Interest rates also increased as the Policy Pate was raised to 14% in May 2022 and then again to 18% in October 2022.

Additionally the Government devalued the Kwacha by about 25% on May 26, 2022, due to Forex shortages.