HomeNewsNicozDiamond EPS up 300%

NicozDiamond EPS up 300%

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NicozDiamond Insurance earnings per share (EPS) rose 314% buoyed by growth in gross premiums written for the year-ended December 2011.

The group recorded a 27% in gross premium written at $23,5 million compared to $18,5 million the previous year. Earnings per share closed the year at 0,29c up from 0,07c in 2010.

Clover Leaf panel beaters and Fidelity Funeral Assurance, the group’s associate companies, contributed $290 883 to group profits.

The group declared a dividend of 0,046 cents per share.

NicozDiamond general manager Noel Manika told an analysts briefing on Friday: “We are pleased with the level of growth driven by inflation below 5%.”

Manika said NicozDiamond contributed the bulk of the gross premium written followed by First Insurance company of Uganda.

The company posted an underwriting profit of $225 000 and profit after tax of $1,5 million.

The group recorded significant fire and engineering claims during the period under review resulting in a claims growth of 33% from prior year, a rate higher than gross premium written.

The group paid $8 million in gross claims.

“Despite the magnitude of the claims, the company was able to pay all these claims in full and restored its clients to their original positions within reasonable time frames,” the group said.
Managing director Grace Muradzikwa said the country’s insurance sector had potential, but required three more years to grow to get into the league of some of the leading African countries such as Kenya and Namibia.

Muradzikwa said at its peak the country used to write $600 million worth of business. She said since the introduction of multi-currencies in the country’s payment system volumes of business written had steadily grown from $60 million in 2009 to $160 million last year.

“Zambia is writing $180 million. Just give us another three years we really should be in the league of Kenya at $670 million and Namibia at $600 million because that is where we used to be,” she said.

Muradzikwa said competition remained high in the insurance sector with 29 players.

“We feel we are seriously overtraded. Zambia write a lot more than us with 10 players and Malawi has six players. We are fighting for a small cake,” she said.

She said during the period under review accounts increased to 25 625, indicating a 124% growth from 11 431 in 2010.

She said the indigenisation law was affecting investor confidence and capital inflows.

“A lot of companies are still struggling and some are closing. Companies are struggling in terms of capital,” she said.

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