ZIMBABWE Stock Exchange-listed insurance firm, Nicoz Diamond Insurance, posted a 21% increase in gross premium written to $30 million for the full-year ended December 31 2013 due to better management of expenses and control of claims.
Speaking at an analysts briefing in Harare last Friday, the company’s general manager corporate services, Gloria Zvaravanhu said during the period under review net premium written increased to $18,3 million after a 29% increase.
For the full-year the company posted a decline in profit of $2,3 million compared to the same period last year from $2,4 million.
Zvaravanhu said underwriting profit was up 727% to $892 000 while cash generated from operations stood at $1,4 million up by 60% from the same period last year.
She said the company was able to make investments during the year from the cash that was generated from operations.
During the 12-month period the number of claims stood at 3 817 with motor vehicles insurance having the majority of the claims.
The company’s managing director Grace Muradzikwa said the revenue growth for this year to February is subdued at $6 955 million compared to $6 962 million same period last year.
“We had a slow start this year, our focus is on revenue and cost alignment. We need to tighten our belts,” she said.
Muradzikwa said the company spent $1,2 million on the Mozambique venture that it partnered with BancABC and Mozre.
She said the company was expecting good results in the long term from the new venture.
Muradzikwa said Nicoz Ugandan subsidiary which faced challenges last year managed to post a profit and had turned around. She said the company would be recapitalising the Ugandan unit soon.
The short-term insurance group has other operations in Malawi and Zambia.
According to the 2014 national budget the insurance industry’s total assets grew by 20% to $3,6 billion as at September 30 2013 due to growth in life assurance and pension fund assets.