Nicoz Diamond Insurance says there has been an improved performance for the company in the first four months of this year due to improvements in production in various sectors of the economy.
The company’s managing director Grace Muradzikwa told shareholders at an annual general meeting in Harare yesterday that the company had written business of $7 million in the first four months of the year compared to $4,5 million last year.
Nicoz posted an underwriting profit of $248 000 during the period under review compared to a loss of $294 000 in 2010.
“For the short-term insurance sector, a gradual increase in the adoption of wider insurance cover has also been observed particularly by clients in the better-performing sectors of the economy,” said Muradzikwa.
“Though there is increased appreciation of the need to have adequate covers, liquidity still remains a challenge and pressures are being felt from clients wanting to negotiate extended payment terms.”
Muradzikwa said competition in the insurance sector remained stiff. She said the company was eyeing to expand its wings in Botswana, Namibia and Mozambique through equity and management contracts.
The insurance company has operations in Malawi, Uganda and Zambia.
Muradzikwa said the company reduced its staff members by almost 40% between November 2010 and April 2011 as a move to ensure that expenses are in line with the revenue.
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“This and other cost management initiatives has seen the expense ratios of the company improve from 42% at December 2010 to 30% as of April 2011,”she said.
Claims ratio for the company stabilised to 49% although claims have been on an upward trend and the company continues to monitor them.
She said despite investment being still in a recovery mode positive returns were being maximised from all investment classes but performance of the local bourse had remained unstable.
