Published: 29 May 2014

NicozDiamond managed to record a revenue growth of 6% as at April 2014 compared to the same period last year, MD Grace Muradzikwa told the AGM today.
 
"We are grateful to our business providers to have recorded this growth in our revenues in an environment characterised by a decline in revenues across most sectors. Gross Premium Written to April 2014 was $11.1 million from $10.4 million of 2013. This is in line with our budget," she said.
 
Muradzikwa told the meeting that demand for insurance has slackened mirroring the liquidity challenges in the economy and in insurance they follow the fortunes of their clients and hence always feel the full wrath of the challenges on the ground.
 
"The company has been enjoying double digit growth for the last few years, which is very strong growth indeed. With the instability in the financial services, the company has benefited from the strong balance sheet and brand as more clients opt for security," she added.
 
She further noted that clients are now looking for security, strength and quality and not just the cheapest insurance quote hence the shift that is being witnessed.
 
In terms of policy units, the MD indicated that they now have more policies on their books compared to prior year, though they have seen that the level of covers taken up by clients generally reduced.
 
Loss experience has been good so far with loss ratios of 42% against 2013's 47% as stated by Muradzikwa.
 
"The measures we have taken around risk management at our clients as well as the supplier engagements to manage cost of claims, are paying off," noted Muradzikwa.
 
However, she said there is a lot to be done to manage costs of motor vehicle repairs which appear to be increasing despite the fact that the general price of most things are declining, "in what some are already referring to as deflation."
 
Expenses management is always an area of key focus for the group as indicated by Muradzikwa and they are making good progress in correcting their expenses ratios over the years, from a high of 46% to earned premiums in April 2012 and now at 36%, against a 25% target.
 
"The profitability of the company is currently in line with budget expectations and above that of 2013. The challenge is to ensure that all those premiums not yet collected are collected in full," she added.
 
She pointed out that investment performance is under pressure from softening interest rates to depressed performance on the stock market and the group is "doing everything possible to safeguard" their investments as well as maximise returns.
 
The group's Diamond Villas property project is going on well and by end of July they are hoping to have finished the first lot of cluster houses for sale. Meanwhile, their regional investments are doing fairly well with the exception of FICO-Uganda which requires capital.
 
"The baby on the block, Diamond Seguros of Mozambique started trading in March 2014 on a good note. Having been well accepted by the market, it has so far met its set revenue targets," added the MD.
 
Muradzikwa told the meeting that though the likely outturn for 2014 is not very clear given the current economic challenges in Zimbabwe, NicozDiamond remains optimistic and hopes that the economic policies being put on the ground will yield results.
 
All the directors were reappointed at a directors' fee of $74 605 and the auditors Ernst and Young were also reappointed at a fees of $68 250.

- zfn

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