NicozDiamond on capital-raising drive

NicozDiamond on capital-raising drive
Published: 14 November 2013
ZIMBABWE Stock Exchange-listed insurance firm NicozDiamond Insurance is in the process of raising capital that will see the firm consolidating its position on both the local and regional markets, a company official has said.

Speaking to Herald Business on Monday, NDI acting managing director Mrs Gloria Zvaravanhu said senior management is currently attending a series of shareholder meetings outside the country to map the way forward for the firm's viability.

"Senior management is currently in Uganda where a series of board and shareholder meetings are ongoing, but all I can confirm at the moment is that we are in the process or raising capital to enhance our operations.

Only after they return can we be in a position to give an official statement on the outcome of the meetings," she said.

NDI in August hinted on its plans to recapitalise its Uganda operations by end of year as the company's earnings for the half-year to June this year had improved.

The firm has interests in First Insurance Company of Uganda while it also has other investments within the region.

NDI has said Fico remains in need of new capital to boost its underwriting capacity and improve its competitiveness in the market hence efforts are being made to ensure that the capital-raising project is concluded before the end of this year.

Earlier this year, NDI managing director, Mrs Grace Muradzikwa also said the firm was eyeing to penetrate the Mozambican market which now awaits an operating licence from that country's authorities.

Zimbabwe's insurance industry nearly collapsed at the height of hyperinflation around 2008 which wiped insurance companies' capacity to settle claims while corporate and individual policyholders were forced to review their positions following the liquidity challenges to prioritise their immediate concerns at the expense of insurance cover.

However, the steady growth that has been witnessed in the economy since dollarisation has influenced more companies to sign up for insurance.
- herald

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