NicozDiamond Insurance Limited group’s total income surged to $2,97 million in the financial year ending December 31, 2017 on the back of an increased performance of the company and recovery in the performance of United General Insurance (UGI) Malawi.
BY TATIRA ZWINOIRA
This was from a 2016 comparative of $52 507.
In a statement accompanying the results yesterday, NicozDiamond chairman James Karidza said the performance of UGI Malawi was buoyed by a rebound from a bad performance in the 2016 comparative period.
“The group registered an encouraging financial performance during the year on the back of firm company performance and recovery in the performance of United General Insurance (UGI) Malawi. The performance of UGI Malawi, which recorded its worst performance to date in 2016, rebounded significantly in 2017 on the back of an improving economic environment referred to earlier and turnaround strategies implemented,” he said.
NicozDiamond Insurance holds a 46% stake in UGI Malawi, which is one of Malawi’s leading short-term/general insurance companies.
UGI Malawi benefitted from restructuring costs which are expected to result in cost efficiencies in the future and further increase the company’s performance.
In terms of the company’s performance that spurred the growth for the overall group, there was an overall uptick in gross premium written of 6,5%, net premium written (6,03%) and a marginal increase in earned premium (1,56%).
“The group made an overall total comprehensive income of $2 972 086 which was a significant surge from the $52 507 achieved in 2016. This was largely buoyed by the good performance from the company which posted a profit after tax of $2 448 927, a significant improvement in performance from the $1 725 016 of 2016,” Karidza
The group’s net premium written increased to $27,38m in the period under review from a 2016 comparative of $24,23m, showing an increase in new insurance policies written pointing to the group taking on more risk.
To that effect, net claims and acquisitions moved marginally to $17,03m in the period under review from a 2016 comparative of $17,02m revealing that the group faced only a marginally increment in claims.
“Gross premium written increased by 9% as both the company and UGI Malawi recorded modest revenue growth during the year. The group enjoyed favourable claims for the last year as there was a 6% reduction in claims incurred,” Karidza said.
Gross premium written for the group increased to $40,19m from a 2016 comparative of $36,99m.
As a result of the group’s net and gross premiums written, this led to an improved 8,61% increase in earned premiums to $26,33m for the period under review from 2016’s similar period’s $24,24m.
Rising inflation saw operating expenses increasing by 13,6% for the period under review.
Karidza said they remained positive of future growth and that business retention and growth through excellent service, cost containment as well as aggressive risk management would be the bedrock of this outlook.