Staff Writer

HARARE: NicozDiamond Insurance Limited posted a resilient financial performance for the year ended December 31, 2025, with profit after tax reaching ZWG22.6 million, supported by steady premium growth, strong investment income and disciplined cost controls, as the insurer navigated a challenging operating environment marked by inflationary pressures and rising claims costs.

The short-term insurer, a key subsidiary of First Mutual Holdings, recorded insurance contract revenue of ZWG1.1 billion during the year, representing a 1 percent increase from the prior year, driven by organic growth in core business lines, new business acquisition and stronger client retention initiatives.

NicozDiamond Insurance Limited Cluster Chief Executive Officer David Nyabadza said the performance reflected the strength of the group’s business model and its ability to adapt to changing market conditions across the region.

“The business has remained resilient despite varying economic and regulatory landscapes in each market. Our focus remains on delivering sustainable value to our clients through innovative products, efficient service delivery and prudent risk management,” said Nyabadza.

He said the group continued to strengthen its footprint across Southern Africa, providing comprehensive general insurance solutions in Zimbabwe, Mozambique and Malawi, while leveraging strong local market knowledge and extensive distribution networks to support growth.

In Zimbabwe, the insurance market remained predominantly driven by motor business, with a growing shift towards foreign currency-denominated premiums as insurers sought to preserve value and manage inflation risks.

Nyabadza said enhanced oversight by the Insurance and Pensions Commission had helped improve capital adequacy across the sector and supported broader market stability.

“The industry continued to face rising claims costs and settlement pressures, which reinforced the importance of prudent underwriting, operational efficiency and digital transformation,” he said.

Claims rose during the year, reflecting higher claims frequency and increased claim values compared to the prior year, in line with portfolio growth and prevailing economic conditions.

However, Nyabadza said the group’s disciplined underwriting standards and active claims management initiatives helped contain overall loss ratios and preserve operational stability.

“Despite the increase in claims activity, we maintained sound underwriting discipline and focused on improving claims management efficiency. This enabled us to protect margins while continuing to meet our policyholder obligations,” he said.

The insurer’s profitability was further supported by solid investment returns from its diversified portfolio, prudent expense management and ongoing efforts to improve internal efficiencies.

Nyabadza said the group remained committed to investing in technology and operational systems to improve service delivery and enhance customer experience.

“The positive performance demonstrates the resilience of our business model and our ability to generate sustainable earnings while continuing to invest in growth and service delivery,” he said.

In addition to the insurance business, NicozDiamond also benefited from gains in its property investment arm, Thirty Samora Machel (Private) Limited, which recorded an investment gain of ZWG6.6 million during the year.

This was in addition to a ZWG17 million investment gain recorded at NicozDiamond, strengthening the overall contribution from non-underwriting income streams.

Regionally, the group’s operations delivered mixed results, reflecting the different macroeconomic and regulatory dynamics in its key markets.

In Mozambique, where the short-term insurance sector posted modest growth in 2025 amid gradual premium increases and new market entrants, the group’s subsidiary Diamond Seguros recorded insurance contract revenue of MZN312 million, up 3 percent from the prior year.

The revenue growth was driven by efforts to deepen market penetration and expand the customer base.

However, Diamond Seguros slipped into a loss of MZN8.2 million, compared to a profit of MZN5.2 million in the previous year, after post-election disturbances early in the year triggered elevated claims.

Nyabadza said the business had been adversely affected by the deterioration in claims performance, which outweighed gains from higher revenue.

“While Mozambique remains a market with long-term growth potential, the operating environment in 2025 was difficult, particularly due to post-election disruptions that led to higher claims. Nevertheless, we remain committed to strengthening our position and responding to evolving market needs,” he said.

He noted that Mozambique’s low insurance penetration, coupled with ongoing regulatory reforms and legal modernisation efforts, continued to create medium-term opportunities for innovation, particularly in climate-related risk products and tailored insurance solutions.

In Malawi, NicozDiamond’s associate, United General Insurance, delivered a strong performance, reporting net profit of MWK8.5 billion for the year.

As a result, NicozDiamond’s share of profit from the Malawi business amounted to MWK1.5 billion, providing additional support to regional earnings.

Nyabadza said the group remained optimistic about its regional growth prospects and would continue to prioritise digital transformation, product innovation and customer service excellence.

“The NicozDiamond Group will continue to harness technology and digital transformation to enhance operational efficiency and deliver seamless services to a diverse client base,” he said.

He said innovation would remain central to the group’s strategy as it seeks to strengthen client relationships, improve market penetration and create long-term value for shareholders.

In Zimbabwe, the insurer plans to focus on developing tailored products to address emerging risks and changing customer needs, while also enhancing claims processing efficiency and customer service responsiveness.

Nyabadza said the group would also continue strengthening its distribution channels, including digital platforms, to expand accessibility in both urban and rural communities.

“With our skilled workforce, strong balance sheet, robust partnerships and advanced technological capabilities, we are well-positioned to drive sustainable growth locally and capture strategic opportunities in select regional markets,” he said.