Nicoz gross premium flat at $11,1m

Published: 21 June 2015

Listed short-term insurer NicozDiamond Insurance Limited (Nicoz)'s gross premium written (GPW) for the four months to April 2015 remained almost flat at $11,16 million compared to same period last year.

Grace Muradzikwa, Nicoz's managing director said they had managed to sustain the 2014 revenue levels of $11,12 million in an environment characterised by a decline in revenue across all sectors.

"We continue to provide the security that clients continuously look for as opposed to just pricing," Muradzikwa told stakeholders at the company's annual general meeting (AGM) held on Friday.

She added that despite limited growth on the premium front, there has been an eight percent increase in claims to $2,5 million from $2,3 million recorded in same period last year.

"Generally, the severity of claims has increased in the period as we paid quite significant claims in the first few months of trading," she said.

Muradzikwa however added that the company was mindful of fraudulent claims, which are on the rise due to slowdown in economic activity.

"Measures are being put at both company and industry level to curb these fraudulent claims and perpetrators are being prosecuted. The loss ratios of 53 percent, were however still within reasonable levels," she noted.

She added that the investment in Malawi-based insurance company UGI in January this year is beginning to yield results as growth in top line was almost 50 percent due the UGI contribution to the group amounting to $5 million.

So far, Nicoz's expenses have slightly increased by one percent compared to same period last year.

"Expense ratios are still as we are still to earn most of the revenue written so far," said Muradzikwa.

Muradzikwa added that investment performance is under pressure from softening interest rates and depressed performance on the stock market.

In order to cushion the organisation from the effects of these investment classes, Muradzikwa said they have invested in 20 housing units which are already being sold despite slow uptake.

Nicoz's Mozambique unit Diamond Seguros met its revenue target of $2,3 million in the first nine months of trading since it started in March 2014.

"As at May 22, 2015, they had written $1 million worth of business which shows that the unit has been well accepted by the market and the focus now is to ensure that the entity becomes profitable,' said Muradzikwa

In the year to December 2014, GPW fell to $28, 7 million from $30 million.

The domestic insurance business contributed 88 percent to last year's profit with the properties portfolio contributing 11 percent.

Losses by associates reduced the profit by 28 percent.
- dailynews

Tags: Nicoz,