NicozDiamond gross premiums jump 38%

ZIMBABWE Stock Exchange-listed insurance firm NicozDiamond Insurance (NDI) has recorded a 38% growth in gross premiums written to $39,7 million, spurred on by a good performance from its Malawian unit, United General Insurance (UGI).

BY TARISAI MANDIZHA

In 2014, the group’s gross premium written was $28,7 million.

In the period under review, net premium written grew by 51% to $26,5 million from $17,6 million in 2014.

Speaking at the company’s analyst briefing in Harare on Friday, NicozDiamond managing director, Grace Muradzikwa said the group recorded $40 million worth of business, but FICO of Uganda was very depressed and UGI made a good contribution to the business.

“We think it is still possible to grow and to grow profitable, write profitable and collectable businesses. In 2016, we are looking at having more than 85% from collections, to manage our claims and operating expenses and sweating our investment assets,” she said.
Muradzikwa said there was a rise in fraudulent activities, including fake notes, in the local market.
“Our claims increased against the background of fraud. We also saw a lot of Fidelity guarantees. We saw an increase in white collar crimes. It’s worrying and we have also arranged short risk management workshops for our staff,” she said.

In the period under review, net commissions were $2,45 million, while management expenses were $2,59 million.
Muradzikwa said the property portfolio declined to 52% from 60%, fixed income grew to 40% from 32%, quoted equities remained at 3% and unlisted investments remained at 5%.

The group recorded 24% increase in claims incurred.

A total of 4 850 claims were incurred, with motor claims contributing 85%, with 4 103, fire claims (305) and others (442).

Commenting on the class mix, she said motor claims recorded 43% from 47% in 2014, fire recorded 26% from 27%, while others recorded 15% from $12%.

“We are quite happy with the mix of the company generally. It portrays the mix of the market. The motor business was down and a lot of reports show that quite a number of cars on the roads do not have licences,” she said.

Giving an update for 2016, Muradzikwa said the group recorded a 41% increase in gross premiums written to $10,1 million as at February 2016 from $9,6 million during the same period last year.

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